(Il Sole 24 Ore Radiocor) - Milano, 5 giu - Italy's gross domestic product is expected to rise by 0.7% in both 2026 and 2027 after growing by 0.5% in 2025, according to forecasts from statistics institute Istat.

Growth is expected to be underpinned by domestic demand net of inventories, which is estimated to have a positive impact of 0.9 percentage points on GDP growth in 2026 and 0.5 points in 2027. Net foreign demand is expected to have a negative impact of 0.2 percentage points in 2026 and no impact next year, with demand depressed amid conflict in the Middle East and the resulting increase in energy prices.

Italy's unemployment rate is expected to fall to 5.5% in 2026 from 6.1% in 2025 and then to stabilize in 2027, Istat also projected.

Meanwhile, the statistics institute expects Italian inflation will rise sharply in 2026. The household consumption expenditure deflator is forecast averaging 2.9% this year, before returning to 2.0% in 2027 as international tensions.

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(RADIOCOR) 05-06-26 12:22:23 (0297) 5 NNNN