Italy's Economic Growth Forecast Halved Due to US Tariffs

In a surprising move, Italy's government is set to significantly reduce its 2025 growth forecast from an initial 1.2% down to just 0.6%. This adjustment, as reported by a government source to AFP on Wednesday, stems from the ongoing tensions over US tariffs. The updated economic roadmap, though yet to be officially confirmed, is anticipated to receive approval from Prime Minister Giorgia Meloni's cabinet imminently.

Meloni's Upcoming Meeting with Trump

Prime Minister Meloni, who has openly criticized US President Donald Trump's broad tariff impositions, is planning a crucial visit to Washington on April 17. The agenda? A direct discussion with Trump regarding the contentious tariff policies that are impacting Italy's economic outlook.

Bank of Italy Adjusts Growth Projections

Adding to the government's revised forecasts, the Bank of Italy has also tempered its expectations, lowering the 2025 growth estimate to 0.5%. Furthermore, the bank has made adjustments to its projections for the subsequent years, 2026 and 2027, signaling a cautious stance on the country's economic recovery amidst global trade uncertainties.