October 23, 2021 "The great international accreditation operation that Mario Draghi is conducting to restore our country the prestige and leading role, in Europe and in the world, which has been lacking for too many years, yesterday had the validation of the financial markets, which , as we have always maintained, they represent the true 'judges of the Supreme Court' of governments' economic policies ".
Thus in a note Renato Brunetta, Minister for Public Administration.
"The rating agency S&P Global has, in fact, raised the outlook for Italian sovereign debt to" positive "from" stable ", confirming the rating at" BBB / A-2 "and affirming that the government's commitment to growth-enhancing reforms can effectively stimulate the economy. "The large bicameral majority of the Draghi government is expected to ensure the implementation by the end of 2021 of the 51 goals and objectives included in its ambitious reform agenda," said the rating agency in a note released last night, the
note from Standard & Poor's
"We expect a strong investment-led recovery in 2021 and 2022, bringing Italy's GDP above 2019 levels a year earlier than we expected. We expect a 2021 budget deficit of 8.8% of GDP compared to government target of 9.4%, as revenues continue to exceed budget assumptions. For 2021, GDP growth is expected to be 6%, followed by + 4.4% in 2022 ". Standard & Poor's writes this, motivating the decision to raise Italy's outlook from stable to positive.
"A resumption of growth in the second quarter of this year, combined with further progress in reducing tax evasion, should raise 2021 tax revenues above target," writes Standard & Poor's. "As a result, we expect Italy's general government deficit to shrink to 8.8% of GDP in 2021 compared to the official 9.4% target and a 9.6% deficit in 2020. We believe the deficit will shrink to 5.8% of GDP in 2022. We expect net public debt to close in 2021 at 144.8% of GDP. We do not expect Italy's budget position net of interest expense to return to profit until 2025. We estimate the payment of interest in 2021 at 3.2% of GDP, compared to over 5.0% in 2012 ".
S&P also added that the measures taken by the European Central Bank since the start of the Covid-19 pandemic to ensure a unified monetary policy within the euro zone have been able to support Italy's recovery and that a strong recovery led investments in 2021 and 2022 should bring Italy's gross domestic product above pre-pandemic levels, one year earlier than previously estimated. The "Draghi moment", concludes Brunetta, continues in the right direction. "After the appreciation of the European Union, yesterday also that of the markets arrived. An unequivocal signal that this government experience must continue for a long time to conclude the ambitious reform plan envisaged by the NRP that will bring theItaly at the level of the other main European partners ".Keywords: italy, gdp, outlook, debt, government, shareoctober, renato brunetta, s&p global, recovery, markets, rating agency, minister for public administration, s&p, country, role