According to Istat projections, Italy's GDP will grow by 0.6% in 2025 and 0.8% in 2026, following increases of 0.7% in both 2023 and 2024. Domestic demand will be the sole source of growth, while foreign demand will continue to make a negative contribution. Istat emphasizes that the international scenario is still influenced by the uncertainty surrounding US tariffs, which, despite being anticipated to reduce in the second half of 2025, will continue to have a detrimental effect on global trade and global development prospects. In particular, private consumption is predicted to rise by 0.7% in both years, aided by higher wages and employment but hindered by a stronger propensity to save. Investments should grow by 1.2% in 2025 and 1.7% in 2026, partly thanks to the stimulus of the NRRP. GDP increased by 0.3% in the first quarter of 2025 compared to the previous quarter, with a positive contribution from domestic demand net of inventories (+0.4 percentage points) and net foreign demand (+0.1 percentage points). Conversely, inventories had a negative impact (-0.3 percentage points). Investments are confirmed as the most dynamic component of domestic demand, growing by 1.6% quarterly.