Italian economy grows 0.2 percent in first quarter

Italy's economy expanded by 0.2 percent in the first quarter of 2026. This result slightly exceeded analyst forecasts despite a lowered annual growth target.

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Italy GDP grew 0.2% in the first quarter of 2026, outperforming expectations for the euro zone's third-largest economy. The reading beat a Reuters poll of 27 economists that predicted a 0.1% quarterly rise and 0.6% annual growth. Investors are monitoring the resilience of EUR/USD as Rome faces a potential sixth consecutive year of sub-1% expansion.

### Italy Beats Conservative Estimates National statistics bureau ISTAT reported on Thursday morning that GDP rose 0.7% year-on-year between January and March. This preliminary data follows a revised 0.3% quarterly increase in the final three months of 2025. The performance provides a narrow buffer for Prime Minister Giorgia Meloni’s administration.

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