Dutch International: Middle East War Could Cause Italian Economic Slowdown

Paolo Pizzoli of the Dutch International Group pointed out in his report that the escalation of conflicts in the Middle East could impact Italy's economic growth this year. In the fourth quarter of 2025, Italy's Gross Domestic Product grew by 0.3% compared to the previous quarter. Pizzoli stated, "Looking ahead, the growth prospects of the Italian economy will largely depend on the development of the US-Iran war and the situation in the Middle East, as well as its spillover effects on the energy market." He pointed out that Italy has a relatively high dependence on energy imports, and the prices paid by Italian companies for energy are already higher than most European counterparts. The Iran war and its chain reactions on the energy market could lead to a significant slowdown in economic growth in the first half of 2026, making our previous forecast of 0.8% growth for the year appear overly optimistic.