The Italian GDP expanded by 0.3% from the previous quarter in the final three months of 2025, confirming the preliminary estimate released earlier and slightly ahead of the initial market expectations of a 0.1% expansion. The economy was supported by gross fixed investment in the period (0.9%), with housing (7.1%) offsetting non-residential capital formation (-1.8%). In the meantime, household consumption (0.1%) and government expenditure (0.2%) were both slightly higher. Net foreign demand contributed negatively to the GDP growth as imports rose by 1% and exports contracted by 1.2%, reflecting the impact of trade disputes with the US started by the tariffs from Washington. The GDP expanded by 0.5% in the full year, slightly below the Bank of Italy’s forecast of 0.6%.
