Rome, Apr 7 (IANS): Italy has slashed its gross domestic product (GDP) growth forecast for 2022 and 2023, with the Russia-Ukraine conflict acting as a drag on economic growth.

The country's economy is expected to grow 3.1 per cent in 2022, compared to 4.7 per cent based on previous estimate, according to a press briefing from Italian Prime Minister Mario Draghi, and Economy and Finance Minister Daniele Franco.

For 2023, the government expects a growth rate of 2.4 per cent, down from a previous target of 2.8 per cent, Xinhua news agency reported.

According to Franco, the government expects the budget deficit to be 5.6 per cent of the country's GDP this year, while government debt is targeted at 147 per cent of GDP. Italy remains one of Europe's most indebted nations in GDP terms.

The Economy and Finance Minister said while Russia accounts for just 1.5 per cent of Italy's total exports, the Russia-Ukraine conflict is having an oversized impact on Italy's economic growth because of indirect factors such as higher energy prices and supply chain issues.