(Il Sole 24 Ore Radiocor) - Milano, 25 mar - Italy's gross domestic product (GDP) is expected to rise by 0.5% in 2026 should the war in the Middle East that erupted at the end of February come to a conclusion by the end of the first quarter, according to new forecasts from CsC, the research arm of the Italian business association Confindustria.

That forecast is 0.2 percentage points below CsC's previous forecast for GDP growth this year.

Should the war continue through the second quarter, CsC forecasts that the Italian economy will enter stagnation. It warns that the Italian company could face a recession if the conflict continues through the fourth quarter.

CsC noted that its forecasts don't account for eventual measures put into place by either the Italian or European governments to support households and companies, something CsC stressed would be desirable.

In the base case scenario of a quick end to war in the Middle.

East, CsC expects Italy's GDP will rise by 0.7% in 2027.

(RADIOCOR) 25-03-26 12:36:51 (0388) 5 NNNN