Italy's economy expanded at a faster-than-expected pace in the second quarter of 2026, according to preliminary data released by the National Institute of Statistics (Istat) on 30 July 2026.

Gross domestic product (GDP) rose by 0.2% on a quarter-on-quarter basis, compared with market expectations of +0.1%. The previous quarter's reading was revised or reported at +0.3%.

On a year-on-year basis, GDP grew by 1.0%, exceeding the consensus forecast of +0.7%. This marks an acceleration from the prior year-on-year figure of +0.8%.

Istat reported that the quarter-on-quarter GDP change was driven by an increase in value added within the services sector, partially offset by declines in agriculture, forestry and fishing, as well as in industry. The sectoral divergence mirrors a broader pattern across several eurozone economies, where services activity has shown greater resilience than manufacturing in recent quarters.

From the demand side, second-quarter GDP growth reflected a negative contribution from net exports, counterbalanced by a positive contribution from the domestic component, which includes changes in inventories.

Italy is the third-largest economy in the eurozone and carries the bloc's second-highest public debt-to-GDP ratio after Greece, making sustained growth particularly significant for fiscal stability and debt sustainability calculations. The GDP figures are published by Istat, the country's official statistics agency, which provides preliminary estimates that may be revised as more comprehensive data becomes available.

The data is relevant to the euro (EUR), as stronger-than-expected growth in a major eurozone economy can influence expectations surrounding European Central Bank (ECB) monetary policy decisions. Istat typically publishes a more detailed sectoral and expenditure breakdown in its second GDP release, which markets and policymakers will monitor for confirmation of the services-led growth pattern and the drag from external trade.