IMF urges Italy to move faster on debt reduction as growth outlook stays modest

The International Monetary Fund has urged Italy to accelerate public debt reduction, warning that the country’s debt level remains excessively high despite recent fiscal consolidation efforts.

The assessment was set out in the IMF’s 2026 Article IV Mission concluding statement, which projected only modest economic growth for Italy. The IMF linked the subdued outlook to persistent challenges including elevated energy prices, global uncertainty and weak productivity.

The fund’s message points to a need for stronger fiscal adjustment as Italy faces rising growth risks. While recent consolidation has improved the fiscal picture, the IMF’s assessment indicates that the pace of debt reduction remains insufficient given the size of the public debt burden and the economic headwinds facing the country.