Italy: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Italy

IMF Staff Country Reports, July 24, 2026

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In 2025, economic activity expanded by 0.5 percent.
Continued strong fiscal consolidation helped strengthen market confidence, with sovereign spreads reaching multi-year lows.
Persistently high debt and dependence on imported energy are exposing Italy to tighter financial conditions and higher global energy prices.
Medium-term growth prospects remain subdued amid weak productivity and adverse demographics.

The near-term outlook is more challenging due to the war in the Middle East and heightened global uncertainty.
Exposure to tighter financial conditions and higher global energy prices has adverse implications for inflation, real incomes, and confidence.

Maintain fiscal consolidation to preserve market confidence (continuation of measures that contributed to sovereign spreads reaching multi-year lows).
Address vulnerabilities from high public debt to reduce sensitivity to tighter global financial conditions.
Mitigate risks from energy import dependence, given exposure to higher global energy prices.
Undertake reforms to boost productivity to support medium-term growth prospects in the face of adverse demographics.

Italy: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Italy