Key facts
- Italy's economy grew 0.2% quarter-on-quarter in the second quarter.
- Year-on-year GDP growth was 1.0% in the second quarter.
- Economists had forecast 0.1% quarter-on-quarter and 0.7% year-on-year growth.
Italy's economy expanded by 0.2% in the second quarter, surpassing economists' expectations of a 0.1% rise. Year-on-year growth reached 1.0%, also exceeding forecasts. The government had previously lowered its growth outlook for the year.
The stronger-than-expected economic growth provides a positive signal for Italy's economy, potentially easing concerns about a recession and offering some relief to the government's fiscal outlook.
Italy's economy demonstrated resilience in the second quarter, expanding by 0.2% from the previous three months, a slightly stronger performance than the 0.1% anticipated by economists. On an annual basis, gross domestic product (GDP) for the euro zone's third-largest economy rose by 1.0% between April and June, significantly exceeding the 0.7% year-on-year forecast. This positive economic momentum comes despite the government, led by Giorgia Meloni, having previously revised down its economic growth outlook for the year to 0.6% in April, citing factors such as surging energy prices and geopolitical instability in the Middle East. The preliminary data from ISTAT also indicated that "acquired growth" stood at 0.8% by the close of the second quarter, suggesting that even if the economy were to remain flat for the rest of the year, it would still achieve 0.8% growth compared to 2025.