FX.co ★ Italy’s Public Deficit Swings Sharply Higher to 7.8% in Q1 2026

Italy’s public deficit widened markedly in the first quarter of 2026, rising to 7.8% from a revised deficit of 1.4% recorded in the fourth quarter of 2025. The latest reading, updated on 01 July 2026, signals a sharp deterioration in the country’s fiscal position at the start of the year.

The move represents a significant quarter‑on‑quarter shift in the public accounts, with the deficit expanding by 6.4 percentage points between late 2025 and early 2026. While detailed drivers of the change were not provided, the data underscore growing fiscal pressures on Italy as it moves further into 2026.

Investors and policymakers will be closely monitoring whether this first‑quarter spike in the deficit proves temporary or marks the start of a more persistent widening in Italy’s public finances in the months ahead.