29.08.202509:00:39UTC+00Italy GDP Confirmed at Contraction in Q2

In the three months ending June 2025, Italy's gross domestic product (GDP) experienced a slight decline of 0.1% compared to the previous quarter, diverging from the earlier forecast of a 0.1% growth and correcting the earlier reported 0.3% increase. This marked the first economic contraction since the second quarter of 2023, primarily attributed to adverse net foreign demand. The impact of impending US tariffs and unpredictable commodity prices disrupted trade flows, leading to a 1.7% reduction in exports. Italy's significant reliance on the US as an export market exacerbated this impact, while imports saw a rise of 2.5%. Meanwhile, household consumption remained unchanged, and government expenditure experienced a marginal uptick of 0.2%. Additionally, gross fixed investment increased by 1%. On an annual basis, the Italian GDP exhibited a modest growth of 0.4% in this quarter compared to the same period the previous year.