Italy's Economic Performance and Challenges Ahead

This report analyzes Italy's economic performance in the context of the upcoming Olympic Winter Games Milano Cortina 2026. It outlines the macroeconomic backdrop, highlighting post-pandemic resilience in output, employment, and trade. The report details Italy's strong average per capita growth among large European economies since Covid-19 and the resilience of trade despite external risks. It notes improvements in fiscal conditions, driven by political stability and NGEU funding, while also addressing structural challenges such as low productivity and demographic pressures. The report discusses the impact of NGEU-funded projects on public investment and infrastructure, emphasizing the need for continued reforms to enhance productivity and labor market participation. It presents projections for GDP growth and inflation, as well as the implications of fiscal performance on public debt and deficit. The report concludes with insights into Italy's competitiveness and the ongoing challenges that could affect its long-term economic outlook.