Fund sees Italian economy growing by 0.5% in 2026 and 2027
International Monetary Fund Mission Chief Lone Christiansen praised the Italian government’s management of the public accounts as she presented the IMF’s latest Article IV report on Italy on Friday.
Christiansen said Italy’s progress on fiscal consolidation and reducing the deficit to 3.1% of GDP in 2025, with forecasts it will come down to 2.9% in 2026 and 2.8% in 2027, “deserves to be commended and highlighted”.
Christiansen added, however, that Italy’s “public debt is high”, coming in at around 137% of GDP in 2025, and recommended the government “slightly accelerate the pace in the short term” of bringing it down.
The report noted that Italian economy continues to grow at a moderate pace and that GDP rose by 0.5% in 2025, in part supported by continued investment under the EU-funded National Recovery and Resilience Plan (NRRP) It forecasts growth of 0.5% for 2026 and 2027 and 0.8% in 2028.
“The conflict in the Middle East and high global uncertainty are factors that will weigh on the outlook,” said Christiansen, adding that “low productivity and unfavourable demographic trends are headwinds in the medium term.”
