Italy’s economy is projected to experience moderate growth in the coming years, with GDP expected to increase by 0.9% in 2026 and 0.6% in 2027. This follows a forecasted growth of 0.6% in 2025, indicating a steady yet gradual economic expansion for the country.
Domestic demand is anticipated to be the primary driver of this growth, contributing 1.2 percentage points to the GDP in 2026 and 0.6 percentage points in 2027. This suggests a strong reliance on internal economic activity to fuel progress, as external factors such as foreign trade are expected to have a neutral effect in 2026 before slightly boosting growth in 2027.
In terms of inflation, the rate is forecast to rise to 3.3% in 2026. This increase is largely attributed to higher raw material prices. However, a slight easing is expected in 2027, with inflation projected to decline to 2.8%.
The economic outlook for Italy highlights the challenges and opportunities for growth, underscoring the importance of domestic demand in driving the country’s economic trajectory. While external trade is not expected to be a major contributor in the short term, its anticipated positive impact in 2027 could provide a more balanced growth dynamic.