S&P upgrades Italy's credit rating from BBB to BBB+

Last week, S&P Global upgraded Italy's credit rating from BBB to BBB+, citing improvements such as a reduced budget deficit, strong export activity, and high domestic savings. The decision caught market participants off guard, especially as Rome had recently cut its national economic growth forecast. The government also hinted at a potential hike in public debt this year and next. These factors, however, did not affect S&P's final assessment, Reuters reported.

S&P Global said the upgrade reflects Italy's strengthened economic and monetary performance amid rising geopolitical tensions. The agency noted significant progress made in stabilizing fiscal spending following the COVID-19 pandemic. More emphasis was placed on the European Central Bank's effective management of inflationary pressures. 

This marks a major milestone ahead of a meeting between Italian Prime Minister Giorgia Meloni and US President Donald Trump, where the two leaders will discuss the impact of trade tariffs on numerous countries and the global economy.