Italy’s Economy Grows 0.2% in Q2 2026, Driven by Domestic Demand

In the second quarter of 2026, Italy’s economy experienced modest growth, with its Gross Domestic Product (GDP) increasing by 0.2% compared to the previous quarter. This growth aligns with earlier estimates and marks a 1.0% year-on-year increase in GDP. The positive economic performance was primarily driven by a 0.2% rise in both household and nonprofit consumption, as well as gross fixed investment.

During this period, Italy saw a 1.5% increase in imports and a 1.0% rise in exports. While domestic demand contributed positively to the GDP growth, net foreign demand negatively impacted the overall economic performance. The services sector played a crucial role in the positive economic outcome, growing by 0.4%, which helped counterbalance declines in other sectors. Specifically, agriculture, forestry, and fishing fell by 0.1%, and the industry sector saw a decrease of 0.6%.

The carry-over effect for Italy’s GDP growth in 2026 was estimated at 0.8%, indicating the economy’s resilience and potential for further growth. Despite challenges in specific sectors, the consistent performance in consumption and investment highlights the underlying strength in domestic economic activity.

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