Italy slashes 2012 growth forecast - reports

The Italian government has dramatically cut its growth economic growth forecast for this year, according to an official document seen by Reuters.

Italy will delay plans to balance its budget by a year, according to a draft Economic and Financial document to be approved by the cabinet today. It has also raised its budget deficit forecasts for 2012-2014 and has slashed this year's economic growth outlook. The draft document predicts the Italian economy will contract by 1.2% this year, a huge increase from the 0,4% decline projected by Mario Monti’s government in December, Reuters reports. The 2012 deficit target is increased marginally from 1.6% to 1.7% of GDP, while the 2013 goal is raised from 0.1% to 0.5%. The paper fore...