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18 Jun, 2023 11:41

Italy’s state debt soars to all-time high

If divided among the Italian population, the sovereign debt would amount to more than €46,000
Italy’s state debt soars to all-time high

Italy’s state debt has continued to soar, jumping by €22 billion ($24.1 billion) in April month-on-month to hit a record high of €2.81 trillion ($3,1 trillion), according to the latest data from the central bank.

The previous all-time high was reached in March, when debt amounted to €2.79 trillion ($3.06 trillion).

Italy's public debt has seen significant growth, reaching nearly 155% of gross domestic product (GDP) at the end of 2020. It currently amounts to 144% of economy, according to Eurostat.

If distributed among the Italian population, the sovereign debt would amount to more than €46,000 ($50,000) per person. 

After the Italian government lifted Covid-related restrictions, the economy began to recover, but it was later weighed down by anti-Russia sanctions, soaring energy costs, and disrupted supply chains.

The cost-of-living crisis in the EU’s third largest economy has continued to worsen, sending the level of public debt skyrocketing amid an increase in public sector borrowing.

Italian officials have repeatedly challenged the European Central Bank over its monetary policy, claiming that rate hikes aimed at taming inflation have piled more financial pressure on one of the Eurozone’s most indebted countries. Italy is currently ranked the second most-indebted member of the Eurozone, after Greece.

For more stories on economy & finance visit RT's business section

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