Fitch confirms Italy's BBB rating with positive outlook

Fitch Ratings confirms Italy's rating at 'BBB' with a positive outlook. The international rating agency announced this in a statement. Italy's rating, Fitch points out, "is supported by its large, diversified and high value-added economy, its membership in the eurozone and the soundness of its institutions relative to the median 'BBB' category.

These strengths are balanced by weak macroeconomic and fiscal fundamentals, in particular very high public debt and still low growth potential. The positive outlook reflects reduced medium-term fiscal and financing risks stemming from exceptionally high debt levels, thanks to improved policy stability and fiscal management'.

Moreover, Fitch notes, it "reflects some resilience and rating room for manoeuvre in the face of headwinds to the economy and public finances from rising external risks and geopolitical uncertainties".

In 2024, the deficit/GDP stood at 3.4 per cent (primary surplus of 0.4 per cent), 'exceeding our forecast of 3.7 per cent and the government's October forecast of 3.8 per cent'. Fitch 'expects the deficit to decline to 3% of GDP in 2025 and 2.7% in 2026'. Italy's debt ratio is 135.3% of GDP in 2024. Recently, the rating agency points out, 'the pace of debt reduction has been strong and Italy has returned its debt to pre-pandemic levels, one of the few eurozone countries to achieve this goal'.