FX.co ★ Italian GDP Revised to Show Growth

In the third quarter of 2025, Italy's gross domestic product (GDP) experienced a modest growth of 0.1% from the previous quarter, thereby reversing the earlier 0.1% contraction. This figure, adjusted from previous estimates of stagnation, aligns with initial market expectations. Notably, gross fixed investment saw a 0.6% increase, driven by a significant 2.5% rise in investments for plants and machinery, which helped counterbalance a 1.4% decline in residential construction. Furthermore, domestic consumption rose marginally by 0.1%, spurred by slight upticks in both private consumption and government spending of 0.1%. Consequently, net domestic demand contributed positively, adding 0.5 percentage points to GDP growth. This growth was further supported by a 2.6% surge in exports, while imports grew by a milder 1.2%, partly due to the easing of stringent tariffs by the United States during this period. Overall, Italy's GDP grew by 0.6% year-on-year in the third quarter and 0.5% over the first three quarters of 2025.