Italy Watchdog Casts Doubt on Official Growth Estimate

By Anonymous

Head of parliamentary budget office says the government’s forecast “appears excessively optimistic”

ROME—Italy’s fiscal watchdog criticized the economic forecasts of the country’s new government, in a blow to the credibility of budget policies that are unnerving investors and the European Union.

The Parliamentary Budget Office said Tuesday it can’t endorse the government’s forecast of 1.5% economic growth next year, adding that it expects growth to be “several tenths of a percent” lower. Weaker growth implies a larger budget deficit than the government is projecting.