Rome: Italy’s GDP is projected to grow by 0.5% in 2024, according to the latest economic outlook report released by the OECD. This forecast indicates a slower economic growth than the Italian government’s prediction of 1% for the same period.
According to Ansa News Agency, the OECD report also anticipates a gradual increase in Italy’s GDP to 0.9% in 2025 and 1.2% in 2026. This outlook presents a more conservative estimate compared to the European Commission’s forecast, which expects a 0.7% rise in Italy’s GDP for the current year. The OECD report highlights that real GDP has shown modest growth over the first three quarters of 2024.
The report attributes this modest growth to resilient household consumption and robust business investment. However, it notes a continued contraction in residential investment, attributed to the phasing out of the Superbonus building tax credit earlier this year. High-frequency data indicates that near-term growth will only gradually improve. While the services sector and consu
mer confidence remain stable, there are signs of weakening in manufacturing output and sentiment.
Despite the sluggish GDP growth over the past year, the unemployment rate has decreased steadily, with labor shortages persisting, particularly for specialized construction workers. The OECD report also notes that collectively bargained wages have increased by approximately 4%, which has supported household incomes and private consumption.
