Italy statistics bureau sees economy growing by 0.7% this year and next

ROME, June 5 (Reuters) - Italy's economy will grow by 0.7% this year, national statistics bureau ISTAT said on Friday, trimming a previous forecast of 0.8% made in December.

In its twice-yearly economic outlook, ISTAT said gross domestic product (GDP) in the euro zone's third-largest economy would expand by 0.7% also in 2027.

Its projections are slightly more upbeat than those of most independent forecasters and the Italian government, possibly reflecting a firmer-than-expected reading in the first quarter, when GDP rose 0.3% from the previous three months.

The European Commission, the IMF, the OECD and the Bank of Italy all forecast that the Italian economy will grow by between 0.5% and 0.6% this year and next.

Prime Minister Giorgia Meloni's government in April cut its growth outlook to 0.6% for both this year and 2027, reflecting surging energy prices and Middle East tensions, from previous targets of 0.7% and 0.8% respectively.

The statistics office highlighted the high degree of uncertainty surrounding its forecasts given the current geopolitical situation, with the duration of the conflict in the Middle East being a key factor.

Italian GDP rose 0.5% in 2025, marking a third consecutive year of growth below 1%.

ISTAT estimated an average jobless rate of 5.5% this year, down from a 6.1% estimate in December, and said the jobless rate would remain at 5.5% in 2027.

(Reporting by Antonella Cinelli, editing by Giulia Segreti, Gavin Jones)