Finance
Italy's economy shrank in second quarter, stats agency confirms
Published by Global Banking and Finance Review
Posted on August 29, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 29, 2025
2 min readLast updated: January 22, 2026
Italy's economy contracted by 0.1% in Q2 2025, mainly due to negative trade flows, while year-on-year GDP increased by 0.4%, according to ISTAT.
ROME (Reuters) -Italy's economy contracted by 0.1% in the second quarter from the previous three months due mainly to negative trade flows, national statistics bureau ISTAT said on Friday, confirming a previous printout.
On a year-on-year basis, second-quarter gross domestic product (GDP) in the euro zone's third largest economy increased by 0.4%, ISTAT said, also confirming the estimate it had made on July 30.
The breakdown of GDP components showed a slight rise in investments, supporting domestic demand, while trade flows gave a negative contribution, possibly reflecting the early impact of a rise in U.S. tariffs and global trade uncertainty.
Industry and agriculture contracted, whereas services were roughly stable, ISTAT said.
The statistics institute confirmed at 0.5% so-called "acquired growth" as of the end of the second quarter
This indicates what the full-year 2025 growth rate would be if there were to be no more quarterly growth over the rest of the year.
Prime Minister Giorgia Meloni's government in April halved its 2025 growth forecast to 0.6% from a 1.2% target set in September, amid mounting uncertainty due to changes in U.S. tariff policy.
Italy posted growth of 0.7% in each of the last two years.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Alvise Armellini)
Italy's economy contracted by 0.1% in the second quarter from the previous three months.
On a year-on-year basis, second-quarter GDP increased by 0.4%, according to ISTAT.
Industry and agriculture contracted, while services remained roughly stable.
ISTAT confirmed an acquired growth rate of 0.5% as of the end of the second quarter.
Prime Minister Giorgia Meloni's government halved its 2025 growth forecast to 0.6% from a previous target of 1.2%.
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