FX.co ★ Italy GDP Growth Picks Up

Italy’s GDP grew by 0.3% quarter-on-quarter in the final three months of 2025, in line with the earlier preliminary estimate and slightly above the initial market consensus of 0.1%. Growth was driven primarily by gross fixed investment, which rose by 0.9%. Within this component, residential investment surged by 7.1%, more than offsetting a 1.8% decline in non-residential capital formation. Household consumption increased modestly by 0.1%, while government spending edged up by 0.2%.

Net external demand weighed on overall growth, as imports rose by 1.0% and exports fell by 1.2%, reflecting the impact of escalating trade tensions with the United States following the imposition of tariffs by Washington. For 2025 as a whole, GDP expanded by 0.5%, coming in just below the Bank of Italy’s forecast of 0.6%.