Italy's Debt "Highest" Since WWII as Lockdown Crushes Businesses - Source

A government source said on Saturday that Italy expects its debt to rise to a new post-war record of 158.5% of gross domestic product (GDP) this year, surpassing the 155.6% target it set in September.

The new debt estimate comes after the impact of the €32 billion stimulus package to contain the corona crises, raising the 2021 budget deficit to 8.8% GDP.

The package will be directed to help the over stressed health services, fund grants and compensation for companies forced to close due to virus lockdowns, covering the delay of taxes.

Italy expects the debt-to-GDP ratio for 2020 to record 156.5%, below the official target set in September of 158%, the highest since World War II, and the deficit is projected to be between 10.5-10.8% of GDP.

Meantime, the official deficit and debt figures for last year will be published by ISTAT in March. It is noteworthy that Italy's public debt is the second-highest in the eurozone after Greece.