Italy GDP Grows More than Expected in Q2

The Italian GDP expanded by 0.2% in the second quarter of 2026, ahead of the median consensus of a 0.1% to mark the fourth consecutive period of growth. The result reflected some resilience to adverse macroeconomic developments in the period as the outbreak of war in the Middle East triggered a surge in fuel and natural gas prices, lifting borrowing costs faced by households, businesses, and the government. The expansion was supported by services, offsetting a contraction in both agriculture and industry. On the demand side, domestic consumption offset the negative impact from net foreign demand, with higher energy prices weighing on import turnover. On annualized terms, growth in the first half was 0.8%, firmly above the latest Bank of Italy forecasts of 0.5%.




