OECD projects Italy’s 2026 growth at 0.5%
Italy's economic growth is expected to slow down to 0.5% in 2026, according to the OECD's latest economic outlook, Agenzia Nova reported.
"The renewed energy price shock is weighing on household consumption, investment, and exports, offsetting the boost from the increased disbursement of funds from the National Recovery and Resilience Plan," the report reads.
"In 2027, falling energy prices and easing uncertainties will push growth to 0.6%," the OECD added.
Private consumption will increase by 0.3% in 2026, then by 0.5% the following year. Public consumption will grow by 0.6% this year and 0.7% in 2027.
The OECD projects that unemployment rate of 5.4% in 2026 and 5.7% in 2027. Exports of goods and services are projected to increase by 0.8% in 2026 and 1.2% in 2027, respectively. Imports will rise by 2.8% this year and 1.2% the following year.
Earlier, it was reported that the Italian Ministry of Health had issued its highest "red" alert warning as a major heatwave is set to hit the country, affecting four major cities: Rome, Florence, Bologna, and Turin.