Italian Economy Beats Expectations with Stronger Growth in Final Quarter of 2025

Italy's GDP rose 0.3 percent in the fourth quarter of 2025 according to preliminary data. This result reduces downside risks for the 2026 economic outlook.

The Italian ITITnational statistics bureau ISTAT reported today that the national economy grew by 0.3 percent on a quarter-on-quarter basis in the fourth quarter of 2025. This preliminary estimate for Italyalso showed a year-on-year increase of 0.8 percent, surpassing market expectations. A Reuters survey of 28 economists had previously forecast a more modest 0.2 percent quarter-on-quarter rise and a 0.5 percent year-on-year increase for the same period.
Tourists sit in front of a gift shop in the inner city of Palermo, Italy, May 14, 2025. REUTERS/Igor Petyx
Tourists sit in front of a gift shop in the inner city of Palermo, Italy, May 14, 2025. REUTERS/Igor Petyx
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