ROME: Italian Prime Minister Mario Draghi said on Friday he expected a short-term bounce in the coronavirus-hit economy, adding that his government planned to take on debt to boost the growth outlook.

"We will have a very strong economic rebound in the coming months and will then have to settle on a path, on a level of growth, that will allow us to free ourselves of the high debt," Draghi told a news conference.

"We are issuing and will (continue to) issue debt. The point is that this debt must be invested well ... it is a bet on good debt," he said.

Italy on Thursday cut its economic growth forecast for this year and said the budget deficit would surge to a 20-year high as the coronavirus crisis weighed on recovery prospects and pushed up government spending.