Economic growth in Italy is moderate but consistent with forecasts, according to the latest projections from the International Monetary Fund's World Economic Outlook, which expects an increase in Italian GDP of 0.5% in 2025 and 0.8% in 2026. According to the IMF, led by Kristalina Georgieva, Italy will manage to bring its public deficit below the 3% of GDP threshold only in 2026, while public debt is set to rise again, reaching 138.3% of GDP within two years. In the European context, Italy is moving cautiously. IMF forecasts suggest that the country's economy will grow slowly but steadily. Following the 0.5% projection for 2025, GDP is predicted to expand by 0.8% in 2026, aided in part by a steady recovery in investment and European funding, but hampered by persistently low consumption and an international environment unfavourable to exports. In terms of public finances, the deficit will be slightly higher than the 3% threshold in 2025, at 3.3% of GDP, before dropping to 2.8% in 2026. However, debt will continue to climb, from 135.3% of GDP in 2024 to 136.8% in 2025 and then 138.3% in 2026. According to the IMF, this trend reflects the costs of rising interest rates and additional spending needs, particularly for defense, economic security, and climate transition. Compared to the continent's major economies, Italy will perform slightly better than Germany in 2025; however, it is at danger of becoming the slowest-growing economy in 2026.