Italy Eyes Deficit Under 3% of GDP Even as Iran War Slows Growth

Italy’s government expects the country’s budget deficit to fall below the European Union limit this year despite a downward revision of its growth forecast due to the Iran war, according to people familiar with the matter.

The latest government projections will show the deficit will likely be under 3% of gross domestic product in 2026, said the people, who declined to be named because discussions are still ongoing. Final numbers are expected to be made public on Wednesday, the people added. The forecasts are still being calculated and may still change.