The Italian economy grew by 0.3% in the first quarter from the previous three months, preliminary data showed on Wednesday, a slightly stronger reading than expected thanks to positive domestic demand which offset a negative impact from trade flows. On a year-on-year basis, first quarter gross domestic product in the euro zone's third largest economy was up 0.6%. 

A Reuters survey of 28 economists had forecast a 0.2% rise quarter-on-quarter and a 0.4% increase year-on-year. The data was greeted with relief by Giorgia Meloni's government, which this month halved its full-year 2025 growth forecast to 0.6% from a 1.2% target set in September, amid mounting uncertainty due to U.S. trade tariff policy.