Italy Forecasts 1.0 Percent Economic Growth in Current Year

Italy also predicts that its debt-to-gross domestic product (GDP) ratio - already one of the highest in the world - will rise over the coming years, while the government's deficit-to-GDP ratio is expected to gradually decline, dipping below the European Union's (EU) 3 percent target by 2026.

These economic projections were outlined in the government's Draft Budget Plan (DBP), submitted to the European Commission.

According to the DBP, Italy's growth is expected to rise to 1.2 percent in 2025, before slowing to 1.1 percent in 2026 and 0.8 percent in 2027. This marks the first time the government has officially released growth forecasts extending as far as 2027.

The document also projects Italy's debt-to-GDP ratio to reach 135.8 percent this year, gradually increasing to 136.9 percent in 2025 and 137.8 percent in 2026, before edging down slightly to 137.5 percent in 2027.

However, the government expects the budget deficit to continue shrinking, from 3.8 percent of GDP this year to 3.3 percent in 2025, falling to 2.8 percent in 2026, and further decreasing to 2.6 percent in 2027.

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