Italy has performed better this decade than pre-2020. How long will this last? in World Economy News 22/06/2026 Italy’s recent economic outperformance relative to other major Eurozone economies has been driven largely by investment spending supported by fiscal stimulus measures, according to a UBS research note published this week. The report said Italy’s real GDP growth has exceeded that of the Eurozone, Germany, and France since 2019. During the same period, unemployment fell to its lowest level in decades. Corporate leverage also declined, while Italy’s net international investment position turned positive for the first time since the 1980s. The report said fixed investment has accounted for most of Italy’s economic growth since 2019. Construction activity was identified as a key driver of that performance. Construction value added has risen sharply over the period and accounted for roughly one-third of the increase in gross value added. According to the report, much of the growth was supported by the Superbonus housing renovation program and funding from the European Union’s Recovery and Resilience Facility (RRF). Italy is scheduled to receive €194 billion from the facility between 2021 and 2026. About 85% of those funds have already been disbursed. The Superbonus program has largely been phased out. Despite that, construction activity has remained resilient, supported by continued spending of RRF funds and a backlog of previously disbursed funding. One final RRF disbursement is expected by the end of 2026. The report said unspent funds could continue supporting economic activity through 2027. Italian GDP growth is forecast at 0.5% in 2028 as support from RRF-funded investment fades. The report also said estimates of Italy’s potential growth rate have improved from pre-pandemic levels, although they remain below the Eurozone average. Separately, the note highlighted greater political stability in Italy during the current decade. It said the current government co