Italy’s Debt Soars on Pandemic Aid But Stays Below Estimates

(Bloomberg) -- Italy's public debt rose dramatically in 2020, though by less than international institutions and the government had forecast.

Government debt stood at 155.6% of gross domestic product at the end of the year, national statistics institute Istat said on Monday. That compares with 134.6% in 2019, after the country spent more than 100 billion euros ($120 billion) to support its virus-battered economy.

While steep, the increase is less than the 158% forecast by the government in October, and the 161.8% predicted by the International Monetary Fund.

Italy's economy contracted 8.9% in 2020, while the budget deficit rose to 9.5% of GDP, Istat said.

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