Finance

Italy Q4 GDP confirmed at +0.3% q/q, +0.8% y/y

Published by Global Banking & Finance Review

Posted on March 4, 2026

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· Last updated: April 2, 2026

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Italy Q4 GDP confirmed at +0.3% q/q, +0.8% y/y
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ROME, March 4 (Reuters) - Italy's economy grew by 0.3% in the fourth quarter of last year from the previous three months thanks to inventory accumulation and firm investments, national statistics

Italy's Economy Grows 0.3% in Q4 2025, GDP Up 0.8% Year-on-Year

Italy's Economic Performance and Outlook

Q4 2025 Economic Growth

ROME, March 4 (Reuters) - Italy's economy grew by 0.3% in the fourth quarter of last year from the previous three months thanks to inventory accumulation and firm investments, national statistics bureau ISTAT said on Wednesday, confirming a previous printout.

Year-on-Year GDP Increase

Year-on-year, fourth quarter gross domestic product in the euro zone's third largest economy increased by 0.8%, also in line with the estimate ISTAT made on January 30.

Annual Growth and Future Projections

Over the whole of 2025, the Italian economy grew by 0.5% from the year earlier, ISTAT reported on Monday.

Giorgia Meloni's government is forecasting a 0.7% growth rate in 2026, which would be a fourth consecutive year of sub-1% growth despite a steady inflow of billions of euros of EU-post-COVID 19 recovery funds.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)

Key Takeaways

  • Q4 2025 GDP gains were led by inventory build-up and investment, as confirmed by ISTAT, with both quarter‑on‑quarter (+0.3%) and year‑on‑year (+0.8%) figures aligning with prior estimates (istat.it).
  • Full‑year growth in 2025 amounted to just 0.5%, reflecting ongoing structural challenges, and tracking below both EU forecasts and peer economies (lemonde.fr).
  • Despite expectations that EU post‑COVID recovery funds would bolster growth, the government’s 2026 forecast remains modest at 0.7%, pointing to persistent low productivity and a reliance on domestic demand (istat.it)

References

Frequently Asked Questions

What was Italy's GDP growth in Q4 2025?
Italy's GDP increased by 0.3% quarter-on-quarter and 0.8% year-on-year in Q4 2025.
What factors contributed to Italy's Q4 economic growth?
Economic growth was driven by inventory accumulation and firm investments.
Who published the Q4 GDP statistics for Italy?
The data was released by ISTAT, Italy's national statistics bureau.
How does Italy's GDP growth compare to EU recovery funding?
Despite EU-post-COVID recovery funds, annual growth remains below 1%.

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