Italy's Q1 GDP Beats Forecasts; Annual Outlook Cut

Italy's economy grew by 0.3% in the first quarter of 2025, the fastest pace in a year and above expectations, driven by agriculture, industry, and domestic spending, while services stagnated and exports underperformed. The annualized GDP growth for 2025 is now projected at 0.4%, falling short of the Bank of Italy's earlier 0.6% forecast. Inflation rose to 2% in April, the highest in 19 months, with notable increases in regulated energy and food prices, and core inflation reached 2.1%. The manufacturing sector's contraction eased as the PMI improved to 49.3, though it still indicates contraction. Unemployment edged up to 6% in March. Financial analysts caution that trading in Italian financial instruments and cryptocurrencies remains risky due to ongoing market volatility and external pressures.