FX.co ★ Italian GDP Growth Confirmed at 0.3%

In the first quarter of 2025, Italy's gross domestic product increased by 0.3%, up from the prior quarter's 0.1% growth rate and aligning with preliminary estimates, surpassing original market predictions of a 0.2% growth rate. This marks the fastest quarterly growth in a year, indicating some progress in the Italian economy. This growth was partly driven by lower interest rates and enhanced confidence in its traditionally precarious debt, which, comparatively speaking, boosted investments. Gross fixed investment saw a significant rise of 1.4%, buoyed by growth in buildings and structures at 1.6%, and machinery at 0.6%. Meanwhile, household consumption increased by 0.6%, and public expenditure rose by 0.7%. Nonetheless, net external demand adversely affected GDP growth, with imports rising by 4.3% and exports experiencing a more modest gain of 0.8%.