Italy's Economy Stagnates Amid Geopolitical Turmoil
The Coop Report 2026 paints a bleak picture of Italy's economy, with stagnant growth and increased inequality. According to the report, GDP growth is expected to reach only 0.8% this year and 0.9% in 2027. The country is characterized by weak consumption, with Italians cutting back on spending due to geopolitical turmoil.
Albino Russo, general manager of Ancc Coop, explains that the recent interest rate hike will have a minor impact on durable goods linked to consumer credit, but no significant effect on packaged consumer goods. The report highlights the importance of 'non-consumption', with 65% of respondents valuing consuming less and combating waste.
Italians are earning less than they did 20 years ago, and the country holds the record of being one of the most unequal in Europe. The Gini coefficient has risen by 2.5 percentage points over the last five years, and 67% of people have experienced at least one form of hardship.
The report warns that a possible resurgence of inflation could trigger a downward spiral in purchasing, both in terms of quantity and quality.