Bank of Italy warns on deficit

Italy’s central bank – the Bank of Italy – yesterday forecast a below-target budget deficit for 2010. Bank of Italy expects real GDP to have expanded one per cent last year and then looks for it to grow 0.9 per cent in 2011 and 1.1 per cent in 2012. The Bank of Italy’s bulletin shows that general government debt grew €106.4bn in the first 11 months of 2010, mainly due to the central government borrowing requirement.