Italy's economy expanded by 0.2% in the second quarter, surpassing economists' expectations and signaling resilience amid global headwinds. Year-on-year growth reached 1.0%, exceeding forecasts of 0.7%. The government maintains a revised full-year growth outlook of 0.6%.
The stronger-than-expected economic performance provides a positive signal for Italy's economy, potentially influencing investor confidence and government fiscal planning amidst a challenging global economic environment.
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. Economy Minister Giancarlo Giorgetti stated that despite a negative international backdrop, the Italian economy is growing more than anticipated.