Italy’s business association Confindustria raises its growth forecast for 2026 to 1.0 percent from 0.5 percent, mainly thanks to EU-funded investments. Reuters reports.
Growth is expected to slow to 0.6 percent in 2027 when EU support ends, while higher oil prices, inflation and interest rates weigh on the economy. The government forecasts growth of 1.0 and 0.8 percent, respectively.
Confindustria raises its inflation forecast for 2026 to 3.2 percent from 2.5 percent and expects 2.2 percent in 2027. The budget deficit is expected to amount to 2.9 percent of GDP this year.
