Italy’s economy is projected to experience modest growth in the coming years, with forecasts indicating a 0.9% increase in GDP for 2026 and a 0.6% rise in 2027. This follows an anticipated economic growth of 0.6% in 2025. Domestic demand is expected to play a significant role in driving this growth, contributing 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 Italy’s economic expansion in 2026, before making a slight positive contribution in 2027. These projections suggest that domestic consumption and investment will be the primary engines of growth, as external trade factors remain less influential.
Inflation in Italy is forecast to rise to 3.3% in 2026, driven primarily by increased raw material prices. However, this inflation rate is expected to ease slightly to 2.8% in 2027, offering some relief to consumers and businesses alike.
These economic forecasts highlight a period of gradual growth for Italy, with domestic demand continuing to underpin economic performance despite challenges posed by external trade dynamics and inflationary pressures. The outlook underscores the importance of internal market strength in sustaining growth as Italy navigates through these economic conditions.