ROME, Feb. 5 (Xinhua) -- Italy's Parliamentary Budget Office on Wednesday revised its economic growth forecasts, now projecting 0.8 percent growth for this year and 0.9 percent in 2026, down from its October estimates of 1.2 percent and 1.1 percent, respectively.

The office, best known by its Italian initials UPB, cited rising energy prices and the risks of tariff-related trade issues as key factors contributing to the downturn. Its previous estimate of a 0.8-percent growth in Italy's economy in 2027 remains unchanged.

The new forecasts came two days after Italy's National Statistics Institute (ISTAT) reported that preliminary figures showed the country's economy grew by just 0.5 percent in 2024, with virtually no growth in the second half.

With its downward adjustment for its forward-looking estimates, the UPB model for this year is broadly in line with estimates from other major state entities: the Bank of Italy in December predicted Italy's economy would grow 0.7 percent this year, after adjusting for calendar effects, while ISTAT's latest estimate, also from December, forecasted 0.8 percent growth.

The UPB's forecasts play a crucial role as they serve as the data for the government's budget-related calculations.

However, Italy's Treasury remains an outlier, forecasting a 1.2-percent growth for this year and a 1.1-percent growth in 2026. ■