Finance

Italy's economy grows 0.2% q/q in Q1, slightly more than expected

Published by Global Banking & Finance Review

Posted on April 30, 2026

2 min read

· Last updated: April 30, 2026

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Italy's economy grows 0.2% q/q in Q1, slightly more than expected

Italy’s Economy Expands 0.2% in Q1 2026, Surpassing Expectations

Quarterly and Yearly Economic Performance Overview

Growth Figures and Market Expectations

ROME, April 30 (Reuters) - The Italian economy grew by 0.2% in the first quarter of this year from the previous three months, preliminary data showed on Thursday, a slightly stronger reading than expected.

On a year-on-year basis, gross domestic product in the euro zone's third largest economy was up 0.7% between January and March, national statistics bureau ISTAT said.

A Reuters survey of 27 economists had forecast a 0.1% rise quarter-on-quarter and a 0.6% increase year-on-year.

Government Growth Outlook and Contributing Factors

Giorgia Meloni's government last week cut its economic growth outlook to 0.6% for this year and next, reflecting surging energy prices and turmoil in the Middle East, from previous targets of 0.7% and 0.8% respectively.

In 2025 Italy grew by 0.5%.

The government forecast a 0.8% growth rate for 2028, which would mark six consecutive years of sub-1% growth.

Detailed GDP Data from ISTAT

ISTAT gave the following details on Italian GDP for the first quarter of 2026 and the previous two quarters:

Q1 2026 Q4 2025 Q3 2025

Q/Q (pct change) 0.2p 0.3 0.2

Y/Y (pct change) 0.7p 0.9r 0.7r

p=preliminary

r=revised

Reporting Credits

(Reporting by Antonella Cinelli, editing by Gavin Jones)

Key Takeaways

  • Q1 2026 GDP beat expectations, rising 0.2% q/q and 0.7% y/y versus forecasts of 0.1% and 0.6% respectively (Reuters Apr 30 2026)
  • Growth remains constrained: government trimmed its forecasts to ~0.6% for 2026–27, citing surging energy costs and geopolitical unrest (Reuters Apr 9 2026; Bank of Italy Apr 3 2026)
  • External forecasters expect even weaker performance: OECD projects 0.4% GDP growth in 2026 and 0.6% in 2027, given energy shocks and global uncertainty (OECD Mar 2026; OECD Survey late Apr 2026)

Frequently Asked Questions

How much did Italy's economy grow in Q1 2026?
Italy's economy grew by 0.2% quarter-on-quarter in Q1 2026 according to preliminary data from ISTAT.
What was the year-on-year GDP growth for Italy in Q1?
On a year-on-year basis, Italy's GDP increased by 0.7% between January and March.
What factors influenced Italy's reduced growth outlook?
The government cited surging energy prices and turmoil in the Middle East as reasons for lowering the economic growth outlook.
Who provided the Italian GDP data?
The data was provided by ISTAT, Italy's national statistics bureau.

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