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    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

    1 min read

    Last updated: March 4, 2026

    Italy Q4 GDP confirmed at +0.3% q/q, +0.8% y/y - Finance news and analysis from Global Banking & Finance Review
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    Tags:FinanceEconomyItalyGDPMarkets

    Quick Summary

    Italy’s economy posted a quarterly GDP growth of 0.3% in Q4 2025, confirming earlier estimates, with year-on-year growth at 0.8%. Full-year 2025 growth stood at 0.5%, while the Meloni government projects 0.7% in 2026 amid continued sluggish expansion despite EU recovery fund inflows.

    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)

    References

    • GDP – Istat
    • Italy's growth is stagnant and declining, not an 'economic miracle'
    • Italy’s Economic outlook 2025 – 2026 – Istat

    Table of Contents

    • Italy's Economic Performance and Outlook
    • Q4 2025 Economic Growth
    • Year-on-Year GDP Increase
    • Annual Growth and Future Projections

    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).

    Frequently Asked Questions about Italy Q4 GDP confirmed at +0.3% q/q, +0.8% y/y

    1What 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.

    2What factors contributed to Italy's Q4 economic growth?

    Economic growth was driven by inventory accumulation and firm investments.

    3Who published the Q4 GDP statistics for Italy?

    The data was released by ISTAT, Italy's national statistics bureau.

  • •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)
  • 4How 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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