Prime Minister Giorgia Meloni expects Italy’s economy to grow 1% in 2026, matching or possibly exceeding growth across the euro zone. Her government forecast 0.6% growth in April, while budget watchdog UPB projected 0.9% last month. Italian GDP (gross domestic product) increased 0.3% quarter-on-quarter in the first quarter and 0.2% in the second, leaving acquired growth at 0.8% by the end of June. Meloni said energy costs and low productivity have constrained sustained expansion, with government measures unlikely to show results until the medium term. Italy’s economy grew 0.5% in 2025 and has not exceeded 1% annual growth in the past three years despite tens of billions of euros in European Union COVID-19 recovery funds.