Italian GDP Growth Slowed Less Than Expected In The First Quarter
Italy's GDP growth in the first quarter of 2026 slowed less than anticipated, supported by the positive effects of the Winter Olympics and factoring in only one month of war-related disruptions. The economy showed resilience despite geopolitical tensions and ongoing challenges. However, growth prospects for the second quarter appear weaker, with risks tilted toward stagnation or contraction depending on developments in the Strait of Hormuz.
- ▪Italy's first-quarter GDP growth in 2026 decelerated less than expected, according to preliminary estimates.
- ▪The economic performance was influenced by just one month of war and received a boost from the Winter Olympics.
- ▪The positive momentum is not expected to continue into the second quarter, with flat growth forecasted.
- ▪A prolonged deadlock in the Strait of Hormuz poses a significant risk of economic contraction in the coming months.
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