Italy raises growth outlook as deficit set to rise
Italy raised its economic growth forecasts for this year and next while projecting that its budget deficit will rise above the European Union limit. Economy Minister Giancarlo Giorgetti cited higher defense and energy spending.
Italy raised its 2026 GDP growth forecast to 1% and projected its fiscal deficit will fall below the EU's 3% limit this year. The revisions come as Prime Minister Giorgia Meloni prepares a pre-election budget against surging energy costs. The fiscal gap will expand in 2027 to 3.4% of GDP as Rome utilizes EU leeway for defense and energy spending.
