Italian Prime Minister Giorgia Meloni now says data from the first half of 2026 could point to economy growth of 1%, matching the euro zone's pace and above her government's earlier 0.6% forecast. Meloni also admits Italy has struggled for years to sustain growth above 1%.
Meloni told newspaper Il Foglio in an interview published Saturday that Italy's economy could point to 2026 growth of 1%, in line with, if not above, the euro zone. The forecast marks a potential upgrade from her government's own April projection.
A jump from April's 0.6% call
Meloni's government forecast 2026 GDP growth of just 0.6% in April. Budget watchdog UPB later revised that to 0.9% last month. Meloni's new 1% estimate now sits above both prior calls.
The upgrade follows firmer momentum earlier in the year. Italian GDP rose 0.3% quarter-on-quarter in the first three months of 2026 and 0.2% in the second quarter. So-called "acquired growth" stood at 0.8% at the end of June, meaning full-year growth would still reach 0.8% even if GDP stayed flat in the remaining two quarters.
Structural weakness persists
Yet Meloni acknowledged deeper problems behind the improved numbers. According to Il Foglio: "The Italian economy has struggled for many years to achieve sustained and steady growth", she said, citing energy costs and low productivity. She added that government efforts to fix these issues will only show results over the medium term.
The economy grew 0.5% in 2025. It has not exceeded 1% in the last three years, despite tens of billions of euros in COVID-19 recovery funds flowing in from the European Union.
Source: Investing.com (Reuters)
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