Annual Report for 2025 (132nd Financial Year) (Banca d'Italia)

Summary

• In 2025 world growth was unchanged on the previous year despite higher US tariffs, with China growing 5 per cent.p.11
• Euro area GDP rose 1.4 per cent in 2025.p.31
• The euro area current account surplus was 1.7 per cent of GDP in 2025.p.15
• Official development assistance from DAC members fell 22 per cent to 190 billion dollars in 2025.p.24
• The Federal Reserve cut rates by 75 basis points between September and December, while the Bank of England cut by 100 basis points during 2025.p.19
• Euro area inflation rose to 3.0 per cent in April 2026 after the conflict in the Persian Gulf.p.31

Key insights

1. India's growth of 7.6 per cent was the strongest among major economies.p.13
2. The euro area public deficit edged down to 2.9 per cent of output in 2025.p.31
3. The decline in ODA is the largest contraction since the creation of the DAC committee in 1961.p.24
4. The OECD forecasts a further 6 per cent fall in development aid in 2026.p.24
5. The United States has announced withdrawal from 66 intergovernmental organisations, including 31 UN entities.p.23
6. Tariffs raised US consumer prices by at least half a percentage point.p.19
7. Euro area value added in strict industry grew 2.2 per cent and in services 1.2 per cent.p.32