Italy's government is expected to announce the closure of schools, restaurants and shops across most of the country as a new wave of coronavirus infections puts hospitals under strain.

Prime Minister Mario Draghi will hold a cabinet meeting mid-morning to decide new restrictions for the eurozone's third-largest economy, which on Thursday recorded almost 26,000 new Covid-19 cases and 373 deaths.

More than 100,000 people with coronavirus have died in Italy since the pandemic swept over the country one year ago, sparking a months-long lockdown and triggering the worst recession since World War II, according to AFP.