The Italian economy is showing greater-than-expected resilience but there are risks from international crises and markets, the Bank of Italy said Monday.
“In an international environment marked by significant instability, the Italian economy—like the European one—has shown greater-than-expected resilience.
GDP grew in the first half of 2026 and is expected to continue expanding in the second half of the year and in the years ahead, albeit at a pace tempered by the effects of rising energy prices and increased financing costs,” said Andrea Brandolini, Head of the Economics and Statistics Department at the Bank of Italy, during a hearing on the Economic and Financial Planning Document (DPFP).
“The evolution of the crisis in the Middle East, widespread geopolitical tensions, and financial market trends—including developments linked to artificial intelligence—represent significant sources of risk for the global economy and, by extension, for the Italian economy,” he said.
Brandolini added that uncertainty remains very high, citing risks from yields and market corrections.
“Uncertainty remains very high.
The economic outlook for the global economy is heavily dependent on the evolution of the conflict in the Middle East and its repercussions on global supply chains and commodity prices.
“Further risks stem from the possibility of a deterioration in financial conditions following renewed increases in long-term yields globally, or potential stock market corrections concentrated in the technology sector.”
