Middle East Conflict May Impact Italy's Economic Growth, ING Analyst Warns

According to Jin10, Paolo Pizzoli from ING highlights in a report that the escalating Middle East conflict could negatively affect Italy's economic growth this year. In the fourth quarter of 2025, Italy's GDP grew by 0.3% quarter-on-quarter. Pizzoli states that the future growth prospects for Italy's economy will largely depend on the developments in the U.S.-Iran conflict and the broader Middle East situation, as well as their spillover effects on the energy market. He notes that Italy's reliance on energy imports is relatively high, and Italian companies are already paying higher energy prices compared to most European counterparts. The Iranian conflict and its ripple effects on the energy market could significantly slow economic growth in the first half of 2026, making the previous annual growth forecast of 0.8% appear overly optimistic.