Italy's 2007 public deficit seen under 3 pct of GDP after 2006 at 3.5 - IMF

MILAN (AFX) - Italy's public deficit should fall under 3 pct of GDP, after 3.5 pct in 2006 and excluding the impact of a negative EU ruling on VAT on company cars, said IMF Italy mission head Alessandro Leipold.

In 2007, the IMF sees Italy's GDP rising 1.5 pct, after a rise in 2006 of 1.75 pct, Leipold said at a news conference.

The latest government estimates see the 2007 deficit at 2.8 pct, while the 2006 deficit is seen at 3.6 before the VAT adjustment, and 4.8 afterwards.

The government's forecast for GDP is for 2006 a rise of 1.6 pct and in 2007 a rise of 1.3 pct. [e-mail] nt/cml COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited