Italy’s deficit may hit 9.2% this year

Battered finances: A file picture showing a tourist guide giving a virtual tour at the Colosseum one day before the country goes back into lockdown. The Italian economy may expand as little as 4.5% in its worst-case scenario. — Reuters

ROME: The Italian Treasury is starting to factor in a bigger hit to the country’s battered public finances this year as another extended lockdown holds back the recovery, according to a senior government official.

Treasury models suggest the budget deficit may reach as much as 9.2% of output this year, the official said.