Italy's economic growth forecast for 2027 has been reduced to 0.4% by the Bank of Italy, down from 0.5%, due to weaker domestic demand driven by high energy prices and geopolitical instability. The bank also anticipates higher inflation for the current and upcoming years. Meanwhile, Turkey's economy grew 2.5% year-on-year in the first quarter, below expectations, impacted by a significant drop in exports and industrial output, despite a rise in household spending. In Tunisia, the central bank decided to hold its key interest rate steady at 7%, citing external risks to inflation and pledging vigilance against price pressures.
The Bank of Italy has revised its 2027 growth forecast for the Italian economy downward to 0.4%, a decrease from the previous projection of 0.5%. This adjustment is attributed to anticipated weaker domestic demand, influenced by escalating energy prices and ongoing geopolitical uncertainty. Concurrently, the central bank has raised its inflation projections for both the current year and the next.
Turkey's economy experienced a year-on-year growth of 2.5% in the first quarter, a figure that fell below market expectations. While household spending saw an increase of 4.8%, this was offset by a substantial 12.7% contraction in exports and a general decline in industrial manufacturing, which collectively dampened overall economic expansion.
In Tunisia, the central bank has opted to maintain its key interest rate at 7%. This decision comes in response to external risks that could impact inflation. The bank has committed to remaining vigilant against potential price pressures. It also noted a positive development in the country's external balance, with the current account deficit narrowing to 1.5% of GDP during the period of January to April.
The Bank of Italy has revised its 2027 growth forecast for the Italian economy downward to 0.4%, a decrease from the previous projection of 0.5%. This adjustment is attributed to anticipated weaker domestic demand, influenced by escalating energy prices and ongoing geopolitical uncertainty. Concurrently, the central bank has raised its inflation projections for both the current year and the next.