Italy's Economy Expands Modestly in Second Quarter
Italy's economy has continued to grow steadily but slowly in the second quarter of 2025, according to data released by the country's national statistics institute Istat. The GDP expanded by 0.2% compared to the previous three months, matching economists' expectations and signaling that Italy's economy is avoiding a contraction.
The growth was supported by resilient domestic demand, particularly in services, which account for about 74% of Italy's GDP. The sector has been performing well due to strong tourism and professional services. Net exports also contributed to the steady growth, while industrial production remained subdued due to ongoing weakness in manufacturing across the eurozone.
Italy's performance is closely watched by policymakers and investors because it is one of the bloc's largest economies and has historically been a laggard. The data will be a key input for the European Central Bank (ECB) policy decisions in the coming months, as well as for investors assessing the resilience of the eurozone's southern economies.