(Bloomberg) -- The Bank of Italy signaled concern about the country’s growth, saying the economy will likely expand less than previously expected this year, making it more difficult for the government to reach its targets.
An accounting revision by Istat, the country’s national statistics institute, “means a mechanical downward correction by 0.2 percentage points to the current year’s estimate” for growth, Sergio Nicoletti Altimari, head of the central bank’s economics and statistics department, told lawmakers on Monday.
The revision refers to estimates based on current legislation and would cut the government’s 1% growth estimate to 0.8%.
Last week, Istat said growth in the second quarter was 0.4% compared with a previous estimate of 0.6%.
The central bank also called for a prudent approach to public finances, saying the government should concentrate on lowering the country’s mammoth debt, which is currently above 130% of gross domestic product.
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