
Macro - Country Economic Forecasts - Italy
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.
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