Italy’s economy is projected to grow by 0.9% in 2026, followed by a 0.6% increase in 2027, according to recent forecasts. This follows a similar growth rate of 0.6% anticipated for 2025. The primary driver behind this growth is expected to be domestic demand, which is forecasted to contribute 1.2 percentage points to the economy in 2026 and 0.6 percentage points in 2027.
In terms of foreign trade, its impact on Italy’s economic growth is predicted to be neutral in 2026. However, a slight positive contribution is expected in 2027, adding to the overall economic expansion. This suggests a stabilizing international trade environment for Italy in the coming years.
Inflation in Italy is expected to rise to 3.3% in 2026, largely driven by increasing raw material prices. By 2027, inflation is projected to ease slightly to 2.8%, indicating a potential stabilization in pricing pressures.
These forecasts highlight the reliance of Italy’s economic growth on internal market factors, with external trade playing a more subtle role in the coming years. The anticipated inflationary trends also reflect potential challenges related to raw material costs, which could impact both businesses and consumers in Italy.