Italy’s economic growth is expected to experience modest gains over the coming years, with projections indicating a 0.9% increase in GDP for 2026 and a 0.6% rise in 2027. This follows anticipated growth of 0.6% in 2025. Domestic demand is set to be the primary driver of this growth, contributing 1.2 percentage points in 2026 and 0.6 percentage points in 2027.
In terms of foreign trade, the impact on Italy’s economic growth is forecasted to be neutral in 2026, before providing a slight positive contribution in the following year. This suggests a balanced trade scenario that neither significantly boosts nor hinders economic expansion in the short term.
Inflation is another important factor in Italy’s economic outlook. It is expected to rise to 3.3% in 2026, driven by higher raw material prices. However, inflation is predicted to ease slightly to 2.8% in 2027, offering some relief to consumers and businesses alike.
Overall, while Italy’s economy is projected to grow, the pace remains relatively slow, with domestic demand playing a critical role in sustaining this growth. Policymakers and businesses may need to navigate the challenges posed by fluctuating inflation rates and the varying impacts of international trade on the economy.