The Italian economy will grow by 0.6% this year and 0.5% in 2027, the country's central bank said in a report on Friday, cutting its previous estimates while also hiking forecasts for the inflation rate. The Bank of Italy's new forecasting scenario takes into account the radical deterioration of the international outlook due to the U.S.-Israeli war against Iran and the resulting "exceptionally high uncertainty", the report said. Both the 2026 and 2027 GDP forecasts are below the growth targets set by the government in September, which were 0.7% and 0.8% respectively.