Italy’s economy experienced modest growth in the second quarter of 2026, with its Gross Domestic Product (GDP) increasing by 0.2% compared to the previous quarter. This growth was confirmed by recent data, which also indicated a 1.0% rise year-on-year. The positive economic performance was bolstered by a 0.2% increase in both household and nonprofit consumption, as well as gross fixed investment.
Despite the overall growth, Italy’s economic expansion faced challenges from the external sector. Imports surged by 1.5%, outpacing the 1.0% rise in exports, which resulted in net foreign demand exerting a negative influence on the GDP figures. However, domestic demand played a crucial role in contributing positively to the economic growth during this period.
On the production front, different sectors of the economy showed varying performance. The services sector expanded by 0.4%, which helped to mitigate declines in other areas, such as agriculture, forestry, and fishing, which saw a slight decrease of 0.1%. The industrial sector faced more significant challenges, with a decline of 0.6% during the quarter.
Looking ahead, the carry-over effect for Italy’s GDP growth in 2026 was estimated at 0.8%, highlighting the potential for continued economic momentum. These findings reflect a mixed economic landscape, with strengths in domestic demand and services countering weaknesses in industry and net foreign demand.