FX.co ★ Italy’s Economy Stagnates in Q3, Missing Growth Forecasts

Italy’s economy stalled in Q3 2026, with GDP flat compared with the previous quarter and missing market expectations for 0.1% growth, according to preliminary data. On a yearly basis, GDP rose by 0.8%, slightly below the 0.9% forecast. Despite the weak quarterly outturn, acquired growth reached 0.8% at the end of September, implying that full-year GDP would expand by the same rate even if activity were to remain unchanged in Q4. The data underline the challenge facing Prime Minister Giorgia Meloni’s government as it works to bolster economic momentum. Earlier this month, the government raised its growth projections, now targeting GDP expansion of 1% in 2026 and 0.8% in 2027, up from previous estimates of 0.6% for both years. The Italian economy grew by 0.6% in 2025, and the government expects growth to accelerate to 0.9% in 2028.