Italy’s Economic Growth Estimate

CERNOBBIO, Italy (Reuters) – Italy plans to confirm a projected 1% economic growth estimate for this year in its medium-term structural budget plan, which will be presented to the European Commission by September 20, according to a Treasury junior minister.

“I believe 2024 estimates will be confirmed … with GDP growth of 1%,” said Economy Ministry Undersecretary Federico Freni during the TEHA business forum in Cernobbio.

In April, the Treasury forecast a gross domestic product growth of 1.2% for 2025 in the euro zone’s third-largest economy, following the 1% prediction for 2024.

Freni did not specify how the Treasury perceives the economic trend for the coming year.

The budget plan will also provide an updated framework for Italy’s strained public finances.

This year, Rome was placed under an Excessive Deficit Procedure by the EU, and the Treasury’s plan is aimed at reducing the fiscal gap in accordance with EU guidelines. The infringement procedure requires Italy to lower its structural budget deficit, excluding one-off factors and business cycle fluctuations, by 0.5% or 0.6% of GDP annually.