Italy Raises 2026 Growth Forecast and Cuts Defense Spending Plans

Key Facts

1The Italian government raised its economic growth forecasts for 2026 while cutting planned defense spending.

The Italian government raised its economic growth forecasts for 2026 while cutting planned defense spending. Investing.com reported that the adjustment is part of an updated economic outlook, with Rome now projecting higher GDP growth for the period.

The shift in fiscal policy reflects a change in government priorities and an improved outlook for the domestic economy. This move toward fiscal discipline comes as recent international data showed mixed manufacturing trends, including a 0.1% rise in US durable goods orders excluding defense on September 25, 2026.