Overview
- Istat's preliminary estimate, published Thursday, July 30, 2026, shows GDP rose 0.2% quarter-on-quarter and 1.0% year-on-year in the second quarter of 2026.
- The increase was driven by the services sector while value added in industry and agriculture fell, reflecting persistent weakness in manufacturing.
- On the demand side, domestic demand excluding inventories contributed positively to growth while net external demand subtracted from it, and Istat raised the year's 'acquired' growth from 0.6% to 0.8%.
- Italy's Q2 outcome compares at least as well as several large euro-area peers and sits alongside Eurostat's estimate of 0.4% quarter-on-quarter growth for the eurozone.
- Analysts warn the recovery is fragile because continued weak foreign demand, trade tensions, and geopolitical shocks could reverse gains and slow growth for households and firms in the second half of 2026.