The Bank of Italy has published the June edition of The Italian economy in brief, its statistical update on current conditions and structural features of Italy’s economy and financial system. The latest snapshot points to modest growth at the start of 2026 alongside firmer inflation, with gross domestic product rising by 0.3 percent quarter on quarter in the first quarter of 2026 and preliminary harmonised consumer price inflation reaching 3.3 percent year on year in May. Within first quarter GDP, household consumption rose 0.5 percent and gross fixed investment 0.7 percent, while exports increased by 2.2 percent and imports fell by 0.7 percent. The current account moved to a EUR 3.5 billion surplus in January to March 2026 from a EUR 3.1 billion deficit in the same period of 2025. For the banking system, the publication reports December 2025 weighted-average ratios of 15.69 percent for Common Equity Tier 1, 19.56 percent for total capital, 6.39 percent for leverage, 179.60 percent for the Liquidity Coverage Ratio and 132.82 percent for the Net Stable Funding Ratio. It also notes that the methodology for the liquidity coverage and net stable funding series was changed from April 2025, with the data previously published from April 2024 to March 2025 revised. The bulletin also reproduces Bank of Italy and selected international forecasts. In the Bank of Italy’s April baseline, Italy’s GDP is projected to grow by 0.5 percent in 2026 and 2027 and by 0.8 percent in 2028, with harmonised inflation at 2.6 percent, 1.8 percent and 1.9 percent respectively.
Bank of Italy2026-06-10
Bank of Italy publishes June economy brief showing Q1 GDP growth of 0.3 percent and May inflation at 3.3 percent
The Bank of Italy’s June “Italian economy in brief” reports 0.3 percent quarter-on-quarter GDP growth in Q1 2026 and 3.3 percent harmonised inflation in May. It notes stronger external and current account positions, solid end-2025 banking capital and liquidity ratios, and revised liquidity coverage and net stable funding series from April 2025. It also reproduces April baseline projections of GDP growth of 0.5 percent in 2026–2027 and 0.8 percent in 2028, with harmonised inflation at 2.6, 1.8 and 1.9 percent respectively.