Italy’s economy has bounced back after the Covid-19 crisis with stronger growth than some of the other countries in Europe. But its recovery now faces challenges from increased costs and uncertainty linked to the war in Ukraine.

An annual report on the construction industry from Cresme, one of Italy’s most prestigious research centres, highlights an important economic forecast: government investment in public works in 2025 will return to levels not seen since 2004, a full two decades earlier, when the index of resources allocated to infrastructure reached an all-time high.