Istat revised Italy's Q1 GDP growth to 0.3% quarter-on-quarter, up from a prior 0.2% estimate and matching Q4 2025. Consumption, investment and trade all showed improvement. The government lost a judicial reform referendum last month and 2025's fiscal deficit exceeded the EU 3% limit. Growth momentum from 2025 was later hit by a Middle East conflict linked to Iran, which pushed up fuel costs and dented confidence, prompting the government to lower its growth forecasts. Bank of Italy Governor Pan

Istat revised Italy's Q1 GDP growth to 0.3% quarter-on-quarter, up from a prior 0.2% estimate and matching Q4 2025. Consumption, investment and trade all showed improvement. The government lost a judicial reform referendum last month and 2025's fiscal deficit exceeded the EU 3% limit. Growth momentum from 2025 was later hit by a Middle East conflict linked to Iran, which pushed up fuel costs and dented confidence, prompting the government to lower its growth forecasts. Bank of Italy Governor Panetta said activity is expected to remain weak in coming months and “in the worst case the economy could stagnate or contract.”