We forecast GDP growth for Italy at 0.8% for 2025, an improvement from the 0.5% expansion we expected this year. We project inflation will pick up to average 1.9% next year, as the contribution from energy inflation will likely increase from a sizeable drop this year. Risks to our forecasts are on the downside and linked to domestic and international factors.
Italy: We anticipate sub-1% growth in 2025 and 2026