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Italy's central bank cuts growth forecasts, lifts inflation estimates in blow to PM Meloni
The central bank said GDP will rise 0.5% in 2026 and 2027, while inflation is expected to reach 2.6% next year.
- The Bank of Italy revised GDP growth forecasts to 0.5% for 2026 and 2027 on Friday, down from previous estimates of 0.6% and 0.8% respectively.
- Following the war in the Middle East and Israel's attack on Iran beginning February 28, the Bank cited 'sudden energy price hikes' driving the downward revision.
- Consumer price inflation is expected to climb to 2.6% in 2026, driven by rising commodity prices, then return to below 2% in 2027 and 2028.
- Prime Minister Giorgia Meloni faces pressure to shield citizens with tax cuts as Italy, the European Union's second-largest gas consumer, relies on gas for about 40% of its energy mix.
- In a worst-case scenario where oil remains above $120 a barrel throughout 2026, the Bank warned Italy could see zero growth that year and recession in 2027 with GDP declining 0.5%.
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10 Articles
10 Articles
GDP reduced to 0.5% in the baseline scenario. Istat confirms deficit to 3.1%. Tensions on government accounts caused by war: record tax pressure and recession risk
·Turin, Italy
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The period of the President of the Council Giorgia Meloni is not the best to use a euphemism. As if it were not enough on Palazzo Chigi comes another ice waterfall. It is the Bank of Italy to predict the risk of a zero growth this year if the piece of oil, due to the war in Iran triggered by the United States guuidata from Donald Trump and Israel, should splashed over 150 dollars per barrel this year and over 120 in 2027 and if the gas remained …
·Rome, Italy
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Coverage Details
Total News Sources10
Leaning Left4Leaning Right1Center3Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 38%
12%
Factuality
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