Italy’s Economic Growth Remains Uncertain Amid Global Trade Tensions

Rome: Italy’s growth outlook “remains highly uncertain amid ongoing global trade tensions,” the IMF said on Thursday following its Article IV mission. The organization highlighted that “persistently low productivity growth and demographic headwinds weigh on longer-term economic prospects.”

According to Ansa News Agency, the Italian economy has continued to expand at a moderate pace. For the second consecutive year, economic activity grew by 0.7 percent in 2024, supported in part by infrastructure investment under the National Recovery and Resilience Plan (NRRP) and a positive contribution from net exports.

The IMF report further projected that over the medium term, weak productivity growth and adverse demographics are expected to continue affecting the outlook, keeping growth at around 0.7 percent.