Italy's targets for limiting its spending deficit and public debt in 2020 will not be reached, according to the International Monetary Fund (IMF). 

The IMF's annual report from Rome advised Giuseppe Conte's government to "take advantage of current low interest rates" and consolidate public finances, as the country's books came under scrutiny again. 

Rome had aimed for a deficit of 2.2 percent of GDP, but it will likely remain at 2.4 percent in 2020. In this latest report the IMF has set a long-term target for a budget surplus of 0.5 percent of GDP by 2025. 

Debt is predicted to remain at 135 percent of GDP or more, according to the Fund. Although the Italian economy is growing, its rate of 0.5 percent is the slowest in Europe, the IMF said. It is likely to increase in the next few years, but only to around 0.7 percent. "These forecasts are the lowest in the EU, reflecting weak potential growth," the IMF said.

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