Italy's Overall Balance (% of GDP): Net Lending/Borrowing Trends and Forecasts (1990-2029)

Italy's fiscal trends reflect the challenges of balancing high public debt and economic growth. The 1990s saw deep deficits, peaking at -11.2% in 1990, largely due to structural inefficiencies and high interest payments. The introduction of the euro and EU fiscal rules prompted significant fiscal consolidation, reducing the deficit to -1.8% by 1999.

The 2008 financial crisis and subsequent Eurozone debt crisis widened deficits, with a notable peak at -9.4% in 2020 due to pandemic-related spending. While deficits are projected to stabilize around -3.0% by 2029, Italy's fiscal outlook remains constrained by structural reforms and high debt levels.