Italy’s 2011 debt-to-GDP ratio at record levels

By IANS,

Rome : Italy’s debt rose to 120.1 percent of GDP last year from 118.7 percent in 2010, the highest level since 1996, the national statistics institute Istat said.

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The country’s economy grew 0.4 percent last year compared to 1.8 percent the previous year, while the budget deficit fell to 3.9 percent in 2011 from 4.6 percent in 2010.

Istat Friday added that last year consumer spending rose by 0.2 percent compared to the 1.2 percent growth registered in 2010.

Spending on services was up 1.6 percent, while goods consumption decreased 0.9 percent, particularly in food consumption, which was down 1.3 percent, reported Xinhua.

Italy recently entered technical recession, with forecasts seeing GDP declining by 1.5 to 2 percent in 2012.