ROME, Sept 20 (Reuters) - The Italian government on Friday cut its forecasts for the economy this year and next and pledged to correct a budget deficit that is heading for a slight overshoot.
The new forecasts, approved at a cabinet meeting, see the economy contracting by 1.7 percent this year compared with a previous projection of -1.3 percent, made in April.
In 2014, growth is now seen at 1.0 percent, down from 1.3 percent previously.
The budget deficit is heading for 3.1 percent of output this year, according to current trends, but Economy Minister Fabrizio Saccomani told reporters it was important this was corrected quickly in order to meet the EU’s 3 percent ceiling. (Reporting by Giuseppe Fonte, writing by Gavin Jones)