Italy’s economic growth is projected to experience modest increases in the coming years, with forecasts indicating a 0.9% growth in 2026 and a slightly lower 0.6% in 2027. This follows an anticipated growth rate of 0.6% in 2025. The primary driver of this growth is expected to be domestic demand, which is set to contribute 1.2 percentage points in 2026 and 0.6 percentage points in 2027. In contrast, foreign trade is predicted to have a neutral impact on growth in 2026, but is expected to contribute positively in 2027.
Inflation in Italy is forecast to rise to 3.3% in 2026, driven by the increasing prices of raw materials. However, this inflation rate is expected to ease slightly to 2.8% in 2027. These projections reflect the anticipated challenges and dynamics within Italy’s economic landscape over the next few years.
Overall, while Italy’s GDP growth rates suggest a steady but slow economic expansion, the reliance on domestic demand highlights a need for robust internal consumer activity and investment. Meanwhile, the interplay between domestic demand and foreign trade will be crucial in shaping Italy’s economic trajectory through the mid-2020s.