FX.co ★ Italian GDP Unexpectedly Stalls

In the third quarter ending September 2025, Italy's gross domestic product (GDP) showed no change compared to the preceding quarter. This stagnation follows a 0.1% contraction observed in the second quarter, defying expectations of a predicted 0.1% recovery, as suggested by preliminary estimates. The data reveal a decline in value added within the industrial sector, while the services sector remained stagnant. This reflects the ongoing effects of uncertain trade relations with the United States, which have countered minor growth in agriculture, forestry, and fishing. Consequently, Italy is projected to achieve an annualized growth rate of 0.5% for the year, sustaining the growth pace seen in 2024 but slightly falling short of the latest forecasts from the Bank of Italy. When compared to the same period last year, Italy's GDP increased by 0.4% in the third quarter.