ROME, July 30 (Reuters) – The Italian economy grew by 0.2% in the second quarter from the previous three months, preliminary data showed on Thursday, a slightly stronger reading than expected that supports the outlook for this year.
On a year-on-year basis, gross domestic product in the euro zone’s third largest economy was up 1.0% between April and June, national statistics bureau ISTAT said, more significantly above expectations.
A Reuters survey of 26 economists had forecast a 0.1% rise quarter-on-quarter and a 0.7% increase year-on-year.
The data suggests that the Italian economy is holding up better than expected in the face of the surge in energy costs linked with the conflict in Iran.
The quarter-on-quarter growth between April and June was the result of a positive contribution from domestic demand which more than offset a drag on growth from trade flows, ISTAT said.
It gave no numerical breakdown of components with its preliminary estimate, but said services expanded, while both industry and agriculture contracted.
So-called “acquired growth” stood at 0.8% at the end of the second quarter, up from 0.6% after Q1.
This means that even if GDP is flat in each of the remaining two quarters of 2026, full-year growth will be up 0.8% from 2025, beating Rome’s official full-year forecast of 0.6%.
Giorgia Meloni’s government in April cut its growth outlook to 0.6% for this year and next, reflecting soaring energy prices and turmoil in the Middle East, from previous targets of 0.7% and 0.8% respectively.
In 2025 Italy grew by 0.5%.
The government forecast a 0.8% growth rate for 2028, which would mark six consecutive years of sub-1% growth.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)
