Italy’s economy expanded modestly in the second quarter of 2026, driven primarily by domestic demand, official data showed. According to the Italian National Institute of Statistics (ISTAT), gross domestic product (GDP) grew by 0.2 percent compared with the previous quarter.

On an annual basis, Italy’s GDP increased by 1 percent in the April-June period, confirming the preliminary estimates released at the end of July. ISTAT also reported that the country’s “acquired growth”—a measure indicating the expected annual growth if GDP remains unchanged in the remaining quarters—stood at 0.8 percent by the end of June. This suggests that, even without further growth in the third and fourth quarters, Italy is set to record a full-year increase in economic output by 0.8 percent compared to 2025.

The growth in the second quarter was primarily supported by domestic consumption and investment, reflecting an improvement in economic activity despite ongoing uncertainties related to global economic conditions and inflationary pressures. While the pace of expansion remains moderate, these figures provide some signs of resilience in Italy’s economy, which is the third-largest in the eurozone.

Economic analysts are closely monitoring upcoming data for the latter half of 2026 to assess whether the momentum can be sustained amid challenges such as supply chain disruptions and external demand fluctuations. The government has also flagged initiatives aimed at stimulating growth, including investments in infrastructure and innovation, which may contribute to economic performance in the near term.

Overall, the latest ISTAT data indicate that Italy’s economy is on a trajectory toward modest growth this year, supported largely by internal market dynamics.