Italy's gross domestic product expanded 0.7 per cent in the first quarter of the year from the fourth quarter of 2000, and by 2.3 per cent year on year, according to national statistics institute (ISTAT) figures.
ISTAT also reported a seasonally adjusted 0.5 per cent rise in industrial production in March from February, but analysts said the data does not change a weakening trend.
Economists polled by Reuterswere forecasting 0.6 per cent quarter-on-year and 2.2 per cent year-on-year economic growth. Fourth quarter 2000 growth was revised to 2.6 per cent from 2.7 per cent.
"The data confirm that in the first three months of the year growth continued at a good rate...sustained mainly by consumption, exports and inventories," said Mr Gianluigi Mandruzzato at Banca Intesa-BCI in Milan.
"As much as they're positive, the statistics are no cause for us to revise our forecast of an overall slowdown, not just in Italy but in the entire euro zone, during the second and third quarters," he said.
Expectations for euro zone growth have fallen in recent weeks, with data out of Germany, the region's largest economy, a particular concern. Berlin recently slashed its 2001 growth target to 2 from 2.7 per cent, and economists have warned that even the lower figure could be vulnerable.