Rome: Italy's GDP is expected to grow by 0.6% in 2025 and 0.8% in 2026 following a 0.7% increase over the previous two years, according to Italian National Institute of Statistics (Istat).
According to Emirates News Agency, the projected GDP growth during the two-year forecast period will be entirely supported by domestic demand net of inventories, contributing 0.8 and 0.9 percentage points in 2025 and 2026, respectively. However, net foreign demand is anticipated to have a negative contribution during both years, at -0.2 and -0.1 percentage points, respectively.
The forecast scenario takes into account a reduction in the climate of uncertainty surrounding U.S. trade policy in the latter half of 2025. Despite this, there is still an assumed negative impact of tariffs on global trade and international growth prospects.
