FX.co ★ Italy GDP Expands 0.5% in 2025

Italy’s GDP grew by 0.5% in real terms in 2025, easing from an upwardly revised 0.8% increase in the previous year and matching earlier preliminary estimates, according to Istat. This marked the weakest expansion since the Covid-induced recession in 2020 and fell short of the Bank of Italy’s most recent forecast of 0.6% growth. The increase in output was driven by private consumption and gross fixed capital formation, while public spending rose only slightly and inventory changes made a negative contribution to GDP.