Italy posts modest growth in first quarter as economic risks increase

Thursday 30 April 2026 - 09:45

Italy recorded slight economic growth in the first quarter of the year, according to preliminary data released by the national statistics institute. The performance exceeded some expectations but remains fragile amid rising global uncertainties.

Gross domestic product (GDP) increased by 0.2% compared to the previous quarter, following a 0.3% rise in the last quarter of the previous year. While this indicates continued expansion, the pace of growth has slowed, reflecting weaker economic momentum.

Year-on-year, the economy grew by 0.7%, slightly lower than the previous quarter’s revised figure. Economists had initially expected weaker quarterly performance, highlighting that the result was modestly better than forecasts.

The growth was mainly supported by external trade, which helped offset a decline in domestic demand. Household consumption and investment showed signs of weakness, suggesting cautious behavior among consumers and businesses.

Despite this positive contribution from exports, concerns remain about the outlook for the coming months. Rising geopolitical tensions and global economic instability are expected to weigh more heavily on activity in the second quarter.

Experts note that uncertainty linked to international conflicts and energy markets could further affect confidence and spending. Inflationary pressures and financial tightening across Europe also continue to challenge economic performance in the euro area.

As one of the largest economies in the region, Italy’s trajectory is closely watched as an indicator of broader Eurozone trends, particularly in a context of uneven recovery across member states.