(MENAFN) Italy’s economy expanded by 0.7 percent year-over-year during the first quarter, surpassing the initial forecast of 0.6 percent, revealed data published Friday by the National Institute of Statistics. On a quarterly scale, the nation’s GDP rose by 0.3 percent.

Despite these positive figures, the projected statistical carry-over for annual growth in 2025 lingered at 0.5 percent, which falls short of the government’s goal of 0.6 percent outlined in its economic plan.

The institute also highlighted a deceleration in inflation, with preliminary May figures showing a 1.7 percent annual inflation rate, down from April’s 1.9 percent.

Addressing economic challenges on Thursday, Bank of Italy Governor Fabio Panetta emphasized the persistent impact of the country’s aging population on growth prospects, noting stagnant real wages over the past 25 years. "The aging population and slow birth rate are likely to profoundly affect Italy's growth potential," Panetta stated, underscoring that legal immigration could play a "significant contribution" in boosting economic expansion.

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