Italy's growth outlook improving on smaller Middle East impact, central bank says
ROME, Oct 16 (Reuters) — The Italian economy will grow by 1% this year and 0.7% in 2027, the country's central bank said on Friday, hiking previous estimates but also revising up its outlook for inflation. In June, the Bank of Italy forecast growth of 0.6% this year and 0.4% in 2027. The improved outlook reflects a "less severe impact" than expected from turmoil in the Middle East, the bank said in its quarterly economic bulletin. For 2027, higher government spending on defence and on measures to offset high energy costs will also help growth. Italy's government targeted growth of 1% this year and 0.8% in 2027 in a multi-year budget framework issued this month. Italy's average EU-harmonised inflation rate (HICP) should come in this year at 3.2%, the report said, up marginally from a previous 3.1% forecast. The 2027 inflation forecast was raised to 2.4% from 2%. (Reporting by Giuseppe Fonte, editing Gavin Jones) ((giuseppe.fonte@thomsonreuters.com; +390680307711;)
ROME, Oct 16 (Reuters) — The Italian economy will grow by 1% this year and 0.7% in 2027, the country's central bank said on Friday, hiking previous estimates but also revising up its outlook for inflation. In June, the Bank of Italy forecast growth of 0.6% this year and 0.4% in 2027. The improved outlook reflects a "less severe impact" than expected from turmoil in the Middle East, the bank said in its quarterly economic bulletin. For 2027, higher government spending on defence and on measures to offset high energy costs will also help growth.
Italy's government targeted growth of 1% this year and 0.8% in 2027 in a multi-year budget framework issued this month. Italy's average EU-harmonised inflation rate (HICP) should come in this year at 3.2%, the report said, up marginally from a previous 3.1% forecast. The 2027 inflation forecast was raised to 2.4% from 2%. (Reporting by Giuseppe Fonte, editing Gavin Jones) ((giuseppe.fonte@thomsonreuters.com; +390680307711;)