The International Monetary Fund (IMF) has projected Italy’s economic growth to average around 0.75% annually between 2024 and 2026. This forecast follows the conclusion of the IMF’s 2024 Article IV Consultation for Italy. The report highlights that while the country recovered well from recent economic shocks, including the pandemic and energy price fluctuations, growth is expected to moderate due to the phasing out of housing investment incentives and other temporary fiscal measures.
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Inflation in Italy is expected to undershoot the 2% target for 2024 but is projected to return to the target in subsequent years.
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The IMF emphasized the importance of continued structural reforms and effective use of the National Recovery and Resilience Plan (NRRP) funds to support economic growth and productivity.
However, several risks could impact this growth outlook.
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These include potential intensification of regional conflicts, slowdowns in major trading partners, increased geo-economic fragmentation, and higher-than-expected interest rates. These factors could dampen investor confidence and exacerbate public debt concerns.


