Italy's Renzi says debt will come down this year if growth holds up

[ROME] Italian Prime Minister Matteo Renzi said on Monday that debt will fall this year as long as growth holds up after the Organisation for Economic Cooperation and Development slashed its forecast for Italian growth last week.

Renzi's government has forecast 1.6 per cent growth this year, with the budget deficit seen falling to 2.4 per cent of output from 2.6 per cent last year. But the OECD said last week Italian growth was not likely to exceed 1 per cent this year.

"If we have growth of 1.4 per cent and a deficit of 2.4 per cent, then debt will fall," Renzi said during a news conference with foreign media.

He said any decline in debt this year would be good news even if it is less than foreseen by Europe's fiscal compact.

REUTERS