Italy slashes growth forecast to miss deficit target "Despite the progress made, there is still a long way to go in a context that is more favourable but still characterised by elements of uncertainty," a report that accompanyied the new forecasts said. The country's massive public debt is forecast to drop to 120.3pc of GDP in 2012, and to 110.8pc in 2015. Growth is forecast to nudge back into positive territory again meanwhile, at 0.5pc in 2013, 1pc in 2014, and 1.2pc in 2015. Explaining its forecast for 2012, the government said: "There has been a further deterioration of the economic situation since December." The revised economic outlook is a blow for Monti, who implemented a series of biting reforms to rein in the debt but has struggled to make inroads with his "Grow Italy" plan, as his approval ratings faltered. The government's outlook contrasts with IMF figures which forecast a 1.9pc contraction in the economy this year.