IMF Adjusts Economic Forecasts for Italy Amid Global Uncertainty
Italian GDP growth projections lowered for 2025, with slight upward revision for 2026 due to shifting global economic conditions.
The International Monetary Fund (IMF) has revised its economic growth forecast for Italy, decreasing the projected growth rate for 2025 while raising expectations slightly for 2026. According to the latest estimates, Italy's GDP is now forecasted to grow by 0.7% in 2025, a reduction of 0.1 percentage points from prior predictions, while the growth rate in 2026 is expected to reach 0.9%, an increase of 0.2 percentage points.
The adjustments come amidst concerns of global economic volatility and the potential impact of trade policies under former U.S. President Donald Trump, which could pose risks to worldwide economic stability.
These factors contribute to the prevailing economic uncertainty observed by IMF analysts.
In alignment with the IMF's outlook, the Bank of Italy has also indicated challenges in reviving economic momentum.
The central bank's economic bulletin reports a persistent sluggishness in economic activity, affected by ongoing weaknesses in the manufacturing sector and a deceleration in services across the euro area.
The Bank of Italy forecasts a GDP growth of 0.8% for 2025 and anticipates an increase to 1.1% by 2026.
The economic outlook within the eurozone presents mixed signals, with Germany and France also facing downward revisions in their growth projections.
Germany's economy is expected to expand by just 0.3% this year and 1.1% in 2025, both significantly lower than previous estimates.
Meanwhile, France is forecasted to see GDP growth of 0.8% in 2025 and 1.1% in 2026.
Conversely, Spain's economic performance has been more optimistic.
The IMF has increased its growth forecasts for the nation, projecting a GDP growth of 2.3% in the current year and maintaining a positive outlook for 2025 and 2026. Spain's economy is now expected to grow by 3.1% over the last year and is projected to continue its robust performance, second only to the United States among advanced economies.
These developments come as international economic institutions continue to monitor evolving global trade dynamics and their implications for economic performance across the eurozone and beyond.
The adjustments come amidst concerns of global economic volatility and the potential impact of trade policies under former U.S. President Donald Trump, which could pose risks to worldwide economic stability.
These factors contribute to the prevailing economic uncertainty observed by IMF analysts.
In alignment with the IMF's outlook, the Bank of Italy has also indicated challenges in reviving economic momentum.
The central bank's economic bulletin reports a persistent sluggishness in economic activity, affected by ongoing weaknesses in the manufacturing sector and a deceleration in services across the euro area.
The Bank of Italy forecasts a GDP growth of 0.8% for 2025 and anticipates an increase to 1.1% by 2026.
The economic outlook within the eurozone presents mixed signals, with Germany and France also facing downward revisions in their growth projections.
Germany's economy is expected to expand by just 0.3% this year and 1.1% in 2025, both significantly lower than previous estimates.
Meanwhile, France is forecasted to see GDP growth of 0.8% in 2025 and 1.1% in 2026.
Conversely, Spain's economic performance has been more optimistic.
The IMF has increased its growth forecasts for the nation, projecting a GDP growth of 2.3% in the current year and maintaining a positive outlook for 2025 and 2026. Spain's economy is now expected to grow by 3.1% over the last year and is projected to continue its robust performance, second only to the United States among advanced economies.
These developments come as international economic institutions continue to monitor evolving global trade dynamics and their implications for economic performance across the eurozone and beyond.
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