Italy’s economy continues to expand at a moderate pace, with GDP rising 0.7% in 2024 and projected to increase 0.5% this year before accelerating to 0.8% in 2025, according to the International Monetary Fund’s Article IV report. The IMF noted that despite heightened global trade policy uncertainty, economic activity “remained resilient in early 2025 due to sustained investment growth and a robust labor market.”
The agency highlighted that Italy’s “better-than-expected 2024 budget outcome enabled a return to primary surplus,” emphasizing that “maintaining strong fiscal performance is essential to place public debt on a downward path.” IMF directors applauded the nation’s “solid budgetary results and primary surplus restoration,” while welcoming authorities’ commitment to a medium-term fiscal strategy balancing “debt sustainability concerns with investment requirements” within the EU’s fiscal framework.
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