Italy sees 2020 deficit soaring to 10.4% of GDP on lockdown

Bloomberg

Italy’s government expects its budget deficit to spiral to 10.4% of gross domestic product (GDP) this year as the economy paralysed by a nationwide lockdown is seen shrinking by 8%.
The government is set to request parliamentary approval for broadening the budget deficit by 55 billion euros ($59.4 billion) to fund a new stimulus package, according to officials, who asked not to be identified discussing a draft economic and financial plan. The plan is still being worked on and details could change, they said. The cabinet may meet to approve the program Thursday.
Prime Minister Giuseppe Conte is working on ways to get more help for the economy, after containment measures in Europe’s original epicenter have crippled the country, especially its wealthy northern regions where the virus hit hardest. His government approved an initial 25-billion euro package last month.
The new plan sees the economy growing 4.7% next year, the officials said, and earmarks about 13 billion euros to help businesses with temporary layoffs and 12 billion euros in liquidity assistance for companies.
Conte has pledged new economic stimulus worth at least 50 billion euros, following an initial 25 billion-euro package approved last month.
Italy’s central bank said the economy shrank about 5%
in the first quarter and Bloomberg Economics expects the country’s GDP to contract more than 13% over the full year.