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Macro - Country Economic Forecasts - Italy

Publisher Oxford Economics
Published Mar 25, 2025
Length 8 Pages
SKU # OFE19929268

Description

We kept our growth forecast for Italy to 0.4% this year and 0.7% in 2026. GDP growth was 0.1% in Q4 2024, marginally above the poor reading for Q3. We assume the US will hit Europe with 10% tariffs. Fiscal policy remains a drag, although we assume an increase in military spending over the medium term while trade uncertainty is elevated.

Table of Contents

8 Pages
Italy: Tariff threats keep the outlook modest
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Politics
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