Rome: The International Monetary Fund (IMF) announced on Wednesday that Italy's GDP is projected to increase by 0.5% in 2026 and 2027. However, the country's public debt is expected to remain significantly high, with Italy recently forecasted to surpass Greece as the eurozone's most indebted nation.
According to Emirates News Agency, the IMF's analysis highlights that Italy's economy is anticipated to maintain a moderate growth rate, hindered by external challenges and inherent structural issues. The real GDP is projected to rise by 0.5% in 2025, and the same growth rate is expected to continue through 2027, influenced by the ongoing impact of the war. The IMF's Article IV report stresses that while fiscal consolidation is progressing, public debt levels are alarmingly high. The deficit is expected to decrease to 3.1% of GDP in 2025. Despite these fiscal improvements, Italy's public debt is projected to reach approximately 137% of GDP by the end of 2025, leaving the nation vulnerable to growth, interest rate, and confidence shocks.