FX.co ★ Italy GDP Growth Revised Higher

Italy’s GDP grew by 0.3% in the first quarter of 2026, matching the pace recorded in the previous quarter. The figure was revised up from the preliminary estimate of 0.2% and exceeded market expectations of 0.1%. Growth was driven by a 0.4% increase in domestic demand: household consumption rose by 0.5%, while government spending was flat. Gross fixed investment advanced by 0.7%, as a 2.7% decline in residential construction was more than offset by a 1.3% rise in non-residential investment. Net foreign demand contributed 0.9 percentage points to GDP growth, with exports up 2.2% and imports down 0.7%. This positive contribution from trade more than compensated for a 1.1 percentage point drag from inventory destocking. On a year-on-year basis, GDP expanded by 0.8% in the first quarter.