Italian Government Cuts 2008 Economic Growth Forecast

Sept. 25 (Bloomberg) The Italian government cut its forecast for economic growth next year and said increased public spending will contribute to a higher debt than previously predicted. The $1.8 trillion economy will expand between 1.3 percent and 1.6 percent next year, less than July's outlook of 1.9 percent, Finance Minister Tommaso Padoa-Schioppa said during a parliamentary hearing in Rome today. Italy's debt will rise to 103.5 percent of gross domestic product next year, up from a previous forecast of 103.2 percent. The government predicts debt of 105.1 percent this year, the highest in the European Union.