GDP to grow by 0.9% in 2026 and 0.6% in 2027- Istat

Italy's GDP is projected to grow by 0.9% in 2026 and 0.6% in 2027, according to Istat. This follows a 0.6% growth in 2025. Domestic demand is expected to drive this growth, contributing significantly in both years. Net foreign demand will have a neutral effect in 2026 and a slight positive impact in 2027. Inflation is anticipated to rise due to increasing raw material prices, with household expenditure deflator expected to reach +3.3% in 2026 and decrease to +2.8% in 2027.