FX.co ★ Italy GDP Grows More than Expected in Q2

Italy’s GDP grew by 0.2% in the second quarter of 2026, exceeding the median forecast of 0.1% and marking a fourth consecutive quarter of expansion. This performance underscored the economy’s resilience to adverse macroeconomic conditions during the period, notably the outbreak of war in the Middle East, which drove up fuel and natural gas prices and pushed borrowing costs higher for households, businesses, and the government. Growth was driven by the services sector, which more than offset contractions in both agriculture and industry. On the demand side, domestic consumption compensated for the drag from net foreign demand, as higher energy prices weighed on import volumes. On an annualized basis, GDP growth in the first half of the year reached 0.8%, clearly surpassing the Bank of Italy’s latest forecast of 0.5%.