Editorial & Advertiser disclosure
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Headlines
Posted By Global Banking and Finance Review
Posted on April 4, 2025
ROME (Reuters) – The Italian economy will grow by 0.5% this year, far below the government’s official 1.2% estimate, the country’s central bank said on Friday, cutting a 0.7% forecast it made in December and warning of the impact of U.S. trade tariffs.
The central bank forecast that tariffs announced by U.S. President Donald Trump on Wednesday would have a negative impact of more than half a percentage point on Italian growth in 2025-2027.
It said this estimate did not include any retaliatory measures by other countries or any broader repercussions of Trump’s announcements for international markets.
Italian “exports are projected to be strongly affected by the US tariff increases, with virtual stagnation this year and a return to gradual growth over the next two years,” the bank said in its forecasting report.
The euro zone’s third largest economy has barely grown in recent months.
Gross domestic product edged up by just 0.1% in the fourth quarter of last year from the previous three months after stagnating in the third quarter.
Full-year growth came in at 0.7% in both 2024 and 2023.
The outlook is clouded by geopolitical tensions, the U.S. trade tariffs and the difficulties faced by Rome in deploying COVID-19 pandemic recovery funds received from the EU.
The Bank of Italy cut its forecast for Italian growth in 2026 to 0.9%, down from 1.2% in its December projection.
Italy’s average EU-harmonised consumer price inflation rate should come in this year at 1.6%, the central bank said, marginally up from the 1.5% it forecast in December.
The inflation rate next year is seen virtually unchanged at 1.5%.
(Reporting By Gavin Jones)