Italy's GDP Growth Highlights Economic Resilience

In a promising sign of economic resilience, Italy's Gross Domestic Product (GDP) experienced a 0.6% increase in the first quarter of 2025 compared to the same period last year, according to the preliminary report released by the National Institute of Statistics (Istat) on Wednesday. This growth marks a 0.3% rise from the previous quarter, signaling a steady recovery path.

Sectoral Performance and Demand Dynamics

The report highlights a mixed performance across sectors. The agriculture, forestry, and fishing sector, along with the industry sector, saw an increase in added value. Conversely, the services sector remained stagnant. On the demand side, domestic demand (excluding inventories) contributed positively to growth, whereas net exports had a slightly negative impact.

Insights from Istat

"The preliminary estimate for the first quarter of 2025 reflects growth in both the primary and industrial sectors, while the services sector recorded, overall, a substantial stability in the three months. On the demand side, the domestic component, measured gross of inventories, is growing, while a slight decrease in the net foreign component is estimated," Istat elaborated in their release.