Italy’s economy experienced modest growth in the second quarter of 2026, with its gross domestic product (GDP) rising by 0.2% compared to the previous quarter, according to official data. This quarterly increase aligns with earlier forecasts, while the year-on-year growth rate was recorded at 1.0%.
The growth during this period was primarily driven by a 0.2% rise in both household and nonprofit consumption, as well as gross fixed investment. However, the trade balance had a mixed impact on the economy; imports surged by 1.5%, outpacing the 1.0% increase in exports, resulting in a negative contribution from net foreign demand. In contrast, domestic demand provided a positive boost to the GDP figures.
On the production front, the services sector showed resilience with a 0.4% growth, which helped counterbalance declines in other areas. The agriculture, forestry, and fishing sectors saw a slight decrease of 0.1%, while the industrial sector experienced a more pronounced decline of 0.6%.
Looking ahead, the carry-over effect for Italy’s GDP growth for the entire year of 2026 is expected to be 0.8%. This indicates that the economy is on a steadier growth path, although challenges remain in balancing domestic demand with international trade pressures.