The Italian economy will grow by 0.6% this year and 0.4% in 2027, the country's central bank said on Friday, confirming its previous estimate for 2026 but trimming next year's outlook from a 0.5% projection made in early April. "Economic activity is set to be affected by weaker domestic demand, held back by the surge in energy prices and even higher geopolitical uncertainty," the Bank of Italy said, forecasting a jump in inflation this year compared with its previous estimate.