The report “Italian Economic Outlook 2025”, prepared by the National Institute of Statistics (Istat) and published on its official website, indicates a slowdown following a 0.7 percent growth in the previous two years. However, a modest recovery is expected by 2026 with a projected GDP increase of 0.8 percentage points. The anticipated GDP growth over the next two years will be driven entirely by domestic demand, while external demand is expected to negatively impact both years, with respective declines of 0.2 and 0.1 percentage points in 2025 and 2026. Experts highlight that external demand remains uncertain due to potential U.S. tariff increases on Europe, significantly affecting this year’s economic growth forecast. Private consumption is expected to grow steadily at 0.7 percentage points annually, supported by rising wages and employment but tempered by increased savings. Investment growth is projected at 1.2 percent in 2025, accelerating from 0.5 percentage points in 2024, with further growth of 1.7 percentage points in 2026. Employment is expected to rise by 1.1 percent in 2025 and 1.2 percentage points in 2026, though at a slower pace than previous years. Inflation is expected to moderate in 2025, driven by falling energy prices and weakening demand.
— new from Prensa Latina
