Italy’s economic landscape over the next few years is projected to experience modest growth, with the country’s GDP forecasted to increase by 0.9% in 2026 and 0.6% in 2027. This follows a similar growth pattern of 0.6% expected in 2025. The primary driver of this growth is anticipated to be domestic demand, which is expected to contribute 1.2 percentage points in 2026 and 0.6 percentage points in 2027.
While domestic factors are set to play a significant role, foreign trade is predicted to have a neutral effect on Italy’s economic growth in 2026. However, a slight positive contribution from foreign trade is anticipated in 2027, potentially offering a small boost to the overall economic performance.
Inflation in Italy is expected to rise to 3.3% in 2026, driven by increased raw material prices. This upward trend in inflation is projected to ease slightly to 2.8% in 2027, indicating some level of stabilization in the economy. The interplay between domestic demand and inflationary pressures will be crucial in determining Italy’s economic trajectory over the coming years.
These forecasts highlight the challenges and opportunities facing Italy’s economy. The reliance on domestic demand underscores the importance of fostering a robust internal market, while the projected inflation rates suggest a need for careful economic management to mitigate the impact of rising costs.