Bank of Italy Cuts Growth Forecast to 0.5% This Year and Next

The Bank of Italy lowered the country’s economic growth forecast for this year and next due to the impact of the US war on Iran.

Gross domestic product in the euro-area’s third-biggest economy is seen rising 0.5% in both 2026 and 2027, compared to previous forecasts for gains of 0.6% and 0.8% respectively, according to the central bank’s latest projections released Friday. The institution still sees a 0.8% increase for 2028.