ItalyThe Italian Parliamentary Budget Office (Upb) has revised its economic growth forecast for 2026 upward to 0.9%, up from 0.5% in April, driven by investments under the National Recovery and Resilience Plan (Pnrr) and temporary increases in exports. However, this improvement does not change the overall assessment of a fragile recovery, as household consumption remains cautious due to limited purchasing power gains and rising energy costs linked to the Middle East crisis. The Upb notes that the boost comes largely from temporary factors, such as Pnrr-funded projects and sector-specific export growth, rather than broad-based demand. While employment rates have reached new highs and inflation remains contained, the outlook for sustained growth remains uncertain, with investment growth expected to slow in 2027 after the Pnrr effects wane.
Bias read (Center): The article presents a balanced overview of economic forecasts and their underlying factors, citing the Upb’s revised estimates and explaining both positive and negative trends without overtly favoring any particular political stance. It includes context on the role of the Pnrr, energy prices, and消费
