Rome, May 29, 2025 – The International Monetary Fund (IMF) has urged Italy to maintain fiscal discipline and press forward with structural reforms, warning that the country’s economic outlook remains fragile despite recent gains.
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Italy’s economy grew by 0.3% in the first quarter of 2025 compared to the final three months of 2024, according to preliminary data released on Wednesday by national statistics agency Istat. The year-on-year growth rate stood at 0.6%, with a carry-over annual GDP growth of 0.4%.
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Italy’s economy and employment showed mixed results in late 2024, with some areas stable and others slowing down.
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Italy’s economy showed mixed signals in recent reports released by Istat and other agencies on Monday.
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In its most recent projection, the Bank of Italy anticipates a further deceleration in the country’s economy in 2024, coupled with a rise in inflation. However, Eurostat announced today that Italy’s debt to GDP ratio was down in the third quarter of 2023.
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The Confindustria research centre has downgraded its GDP growth projections following the tumultuous economic ride of the past three years. The organisations cautions the Italian economy is once again edging towards the modest growth rates that characterised it in previous decades.
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Italy’s Gross Domestic Product (GDP) increased in the third quarter. The annual inflation rate in November, meanwhile, was stable in relation to the previous month but highest since 1984.
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