Italy's GDP Grows 0.2 Percent in Second Quarter 2026

Preliminary data from ISTAT shows the Italian economy grew by 0.2% in the second quarter of 2026, exceeding economist expectations of 0.1%. On a year-on-year basis, gross domestic product increased by 1.0%, an acceleration from the 0.8% growth seen in the previous period.

The growth was primarily driven by domestic demand and the services sector, which helped the economy offset contractions in agriculture and industry. This performance suggests the country is better prepared to manage energy cost surges associated with conflict in Iran than analysts previously anticipated. The current trajectory puts Italy on track to exceed the official full-year growth forecast of 0.6% set by the Government of Italy.

Despite the GDP growth, labor market data indicates emerging pressure. The unemployment rate rose to 5.7% in June, marking a seven-month high. This figure represents an increase from 5.3% in May and added 97,000 people to the total number of unemployed individuals.