Italy’s economy is projected to see modest growth in the coming years, with the country’s GDP expected to increase by 0.9% in 2026 and 0.6% in 2027. This follows an anticipated growth rate of 0.6% in 2025, indicating a steady, albeit slow, economic expansion.
The primary driver of this growth is expected to be domestic demand, which is projected to contribute 1.2 percentage points to the GDP growth in 2026 and 0.6 percentage points in 2027. In contrast, foreign trade is anticipated to have a neutral impact on growth in 2026, with a slight positive contribution expected in 2027.
Inflation rates in Italy are also forecasted to fluctuate during this period. In 2026, inflation is expected to rise to 3.3%, primarily due to higher raw material prices. However, it is projected to ease slightly to 2.8% in 2027, suggesting some stabilization in price levels.
These forecasts highlight the importance of domestic consumption in propelling Italy’s economic growth, while external trade factors remain stable. The anticipated inflation trends also underscore the challenges posed by fluctuating raw material costs, affecting overall economic stability.