Italy's real GDP growth has exceeded that of the Eurozone, Germany, and France since 2019, driven largely by investment spending supported by fiscal stimulus, according to a UBS research note. Fixed investment accounted for most of the growth, with construction value added rising sharply and contributing roughly one-third of the increase in gross value added, fueled by the Superbonus housing renovation program and the European Union's Recovery and Resilience Facility. Italy is scheduled to receive €194 billion from the facility between 2021 and 2026, with about 85% already disbursed, and one final disbursement is expected by the end of 2026. Unspent funds could continue supporting activity through 2027, but GDP growth is forecast at just 0.5% in 2028 as the support fades. The report also noted that unemployment fell to its lowest level in decades, corporate leverage declined, and Italy's net international investment position turned positive for the first time since the 1980s, while greater political stability and improved banking sector fundamentals have benefited Italian equities.
Eni S.p.A.Italy's fiscal stimulus and improved banking sector fundamentals benefit Italian equities, including Eni
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