MNI SOURCES: Italy Finance Min Sees 2020 Deficit 10.8% GDP

Italy's budget deficit should total 10.8% of GDP in 2020, before falling to 7% in 2021, according to Finance Ministry estimates to be presented to a cabinet meeting on Wednesday for approval by Sunday, Finance Ministry sources told MNI.

The deficit should come in at 4.7% of GDP in 2022, and 3% in 2023, the sources said.

The forecasts, which come as the government works on its recovery plans to qualify for European Union Covid aid and to be presented to Brussels in mid-October, see Italy's economy contracting by 9% in 2020, and growing by 6% in 2021.

Italy's public-debt-to-GDP ratio should hit 158% of GDP in 2020, before falling for the rest of the forecast period, the sources said.