ROME: Italy’s public budget deficit narrowed in the fourth quarter of last year to 3.0% of gross domestic product, compared with a deficit of 5.8% in the same period of 2020, official statistics agency ISTAT said on Tuesday.

Over the whole of 2021 the deficit stood at 7.2% of GDP, confirming full-year data issued on March 1.

That compared with a deficit of 9.6% in 2020, when Italy was hammered by the first wave of the coronavirus pandemic.

The narrowing of the deficit in the fourth quarter was due to a strong 8.1% year-on-year increase in revenues which outstripped a smaller rise of 3.1% in government spending, ISTAT said.

Italy reports 77,621 Covid-19 cases, 170 deaths

Over the full year, revenues rose by 9.2% year-on-year, while public spending increased by 4.4%.

Italy is currently targeting the 2022 deficit 5.6% of GDP.

ISTAT gave the following quarterly public finance data. All data are expressed as a percent of gross domestic product.