Economy Minister Giancarlo Giorgetti recently expressed optimism about the economic forecast for 2024. During a hearing at the Budget Committees of the Chamber of Deputies and the Senate, he said he would not be surprised by an upward revision to preliminary GDP estimates. According to Giorgetti, a return to economic expansion is expected by the end of the year, supported by positive short-term signals.
Giorgetti stressed that forecast models indicate a recovery in foreign demand and a recovery in domestic consumption in the final quarter of the year. He said:
“Overall, short-term growth prospects remain encouraging.” Furthermore, he highlighted how the government’s credibility and prudent management of public finances have played a crucial role in improving the ratings by rating agencies and in reducing the spread compared to the levels of two years ago.
The minister clarified that the resources deriving from the preventive agreement introduced in the tax decree-law have not been included in the financial coverage for reasons of prudence. These resources can be used only after being quantified and included in the budget. Giorgetti also highlighted the importance of responsible management of public finances in an uncertain international context. This strategy has allowed the government to continue to support the incomes of middle-low income workers and to make some support policies structural.
“The confirmation of the regime and sometimes the modification of the perimeter and configuration can help to alleviate the fears of market operators linked to the uncertainty of the economic outlook.” On defense, the minister warned that the 2% of GDP target set by NATO is ambitious and difficult to achieve with current financial coverage. The allocations provided for in the budget law will lead to a gradual increase, reaching only 1.61% in 2027.
Giorgetti’s statements offer a glimpse into the Italian economic situation and the government’s future plans. As global economic conditions evolve, it will be crucial to closely monitor fiscal policies and strategies to ensure sustainable growth. The key challenge remains to maintain a balance between supporting families and financial responsibility in an increasingly complex environment.
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