Italy cuts growth outlook, expects surge in deficit, debt
* Hikes deficit target to 11.8% * Approves new 40-bln-euro stimulus package * Debt to rise to post-war record of almost 160% of GDP ROME, April 15 (Reuters) - 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 weighs on recovery prospects and pushes up government spending. The Treasury’s annual Economic and Financial Document (DEF)forecasts gross domestic product will rise in 2021 by 4.5%, down from a 6% projection made last autumn. The fiscal gap is targeted at 11.8% of GDP, up from a previous...