The Italian GDP expanded by 0.5% in real terms in 2025, slowing from the upwardly revised 0.8% growth rate in the previous year and in line with the preliminary estimates from earlier, according to Istat. It was the softest expansion since the Covid pandemic triggered a recession in 2020, and missing the Bank of Italy's latest expectations of a 0.6% increase. The GDP growth was supported by private consumption and gross fixed capital formation, while public expenditure was only marginally higher and changes in inventories contributed negatively to the GDP.