Italy's Economic Growth in Q1 2025

Italy's National Institute of Statistics (Istat) has released its preliminary report, showcasing a 0.6% increase in the Gross Domestic Product (GDP) for the first quarter of fiscal 2025 compared to the same period last year. This growth is a positive sign for the Italian economy, which also saw a 0.3% rise from the previous quarter.

Sector-Wise Performance

The report highlights a notable increase in added value within the agriculture, forestry, and fishing sector, as well as the industry sector. However, the services sector remained stagnant, indicating a mixed performance across different areas of the economy.

Demand Dynamics

On the demand side, domestic demand (excluding inventories) contributed positively to the GDP growth. In contrast, net exports had a negative impact, underscoring the challenges faced by Italy in the global market.

Istat elaborated, "The preliminary estimate for the first quarter of 2025 reflects growth in both the primary and industrial sectors, while the services sector recorded, overall, a substantial stability in the three months. On the demand side, the domestic component, measured gross of inventories, is growing, while a slight decrease in the net foreign component is estimated."