Bank of Italy says Olympics tourism gave first-quarter growth a lift

Italy’s economy got a first-quarter lift from February’s Winter Olympics, but the Bank of Italy said the gain looked more like a tourism jolt than a durable rebound. The central bank said gross domestic product appeared to have continued expanding at a moderate pace, with services doing much of the work.

That reading matters because it points to an economy that was moving forward, but only cautiously. The strongest support came from service industries tied to business demand, not from a broad surge in manufacturing or investment. The Bank of Italy’s message was that Italy entered spring with some momentum, yet still lacked the kind of wide-based acceleration that would signal a stronger recovery.

The Olympics effect gave the first quarter an obvious boost. A February influx of visitors helped hotels, transport operators and related businesses, lifting spending in ways that can fade quickly once the event is over. That makes the quarter a useful stress test for Italy’s underlying strength: it showed the economy could respond to a major event, but it also underscored how much of the improvement may have been temporary.

The central bank’s quarterly Economic Bulletin, which covers the real economy, public accounts, banking activity and financial markets, has repeatedly highlighted services as a key source of growth. In its January bulletin, the Bank of Italy said euro-area growth was being driven mainly by services and warned that uncertainty from trade policy and geopolitical tensions remained high. That backdrop helps explain why Italy’s modest first-quarter performance may be encouraging without yet being convincing.

Official forecasts also suggest no abrupt turn to faster growth. Istat projected Italian GDP growth of 0.5% in 2025 and 0.8% in 2026, after 0.7% growth in 2024. The Bank of Italy’s own macroeconomic projections were scheduled for April 3, adding to the sense that policymakers were still working with a picture of slow, uneven expansion rather than a decisive upswing.

For investors and policymakers, the signal is mixed but clear. Services have kept Italy from stalling, and event-driven tourism has provided a visible lift. But the first quarter did not show the broad economic momentum that would indicate a lasting turnaround, leaving the country dependent on resilient domestic services and a steadier external backdrop to sustain growth through 2026.