Overview
- Istat’s revised accounts show overall tax pressure rising to 42.5% of GDP in 2024 from 41.2% in 2023, the highest since 2020.
- National accounts confirm 2024 GDP growth at 0.7%, revise 2023 up to 1.0%, put the 2024 deficit at 3.4% of GDP, and the debt ratio at 134.9%, with interest outlays up 10.1%.
- The OECD’s Interim Outlook projects Italian GDP growth of 0.6% in both 2025 and 2026 and urges continued debt reduction and structural reforms.
- The Parliamentary Budget Office estimates fiscal drag at about €3.2 billion this year under 2% inflation, noting the new IRPEF structure has amplified the effect.
- The government signals a push to bring the deficit below 3% by end-2025, as broad tax-debt ‘rottamazione’ plans are steered toward the budget law with calls for more selective relief.