IMF forecasts 0.5% growth for Italy, downgrades France and Germany amid global inflation concerns
The IMF's World Economic Outlook forecasts modest 0.5% GDP growth for Italy in 2025 and 2027, while cutting estimates for France and Germany. The NRRP investments support Italian economic activity, but high energy/food prices and uncertainty weigh on household consumption. Global inflation forecasts have been revised upward to 4.7% for 2026 due to rising commodity prices and Middle East tensions.
Key quotes
The investments planned under the NRRP (National Recovery and Resilience Plan) continue to support economic activity.
At the same time, higher energy and food prices and elevated uncertainty are weighing on household consumption.
The forecast has been revised upwards, partly beca...
From the article
The IMF has also lifted its 2026 global inflation forecast to 4.7%, citing rising energy and commodity prices and risks from tensions in the Middle East.
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