Italy’s economy is projected to grow by 0.9% in 2026 and 0.6% in 2027, building on a 0.6% growth in 2025. This forecast highlights domestic demand as the primary catalyst for economic expansion, contributing 1.2 percentage points in 2026 and 0.6 percentage points in 2027. These figures reflect a steady, albeit modest, economic growth trajectory for Italy in the coming years.
Foreign trade is expected to have a neutral impact on Italy’s economic growth in 2026. However, it is anticipated to offer a slight positive contribution in 2027, suggesting a potential area for bolstering economic performance. This aspect could be crucial for economic strategists looking to enhance Italy’s growth prospects amid fluctuating global trade dynamics.
Inflation in Italy is forecast to rise to 3.3% in 2026, driven by higher raw material prices. The inflation rate is expected to ease slightly to 2.8% in 2027. This anticipated fluctuation in inflation rates underscores the challenges posed by international commodity prices and their impact on domestic economic stability.
The projections for Italy’s economy indicate a period of moderate growth, emphasizing the importance of domestic demand as a growth driver while highlighting potential challenges and opportunities in foreign trade and inflation management. As policymakers and economic planners look ahead, these forecasts provide a roadmap for addressing key economic factors that will influence Italy’s economic trajectory in the mid-2020s.