The Italian GDP expanded by 0.2% on the second quarter of 2026, easing from the 0.3% growth in the earlier period and aligned with the preliminary estimate. It marked four consecutive quarters of growth in the Italian economy, despite the economic headwinds in the June quarter as the outbreak of war in the Middle East triggered a global energy shortage and lifted borrowing costs. Private consumption expanded by 0.4% on the quarter, offsetting a 0.1% contraction in government expenditure as Rome attempts to reign in spending to comply with EU fiscal rules. In the meantime, gross fixed investment rose by 0.3% as a 7.4% surge in non-residential development offset a 7% drop in residential construction. Meanwhile, net-foreign demand contributed negatively to the GDP, with a 0.8% jump in exports and a 1.7% rise in imports, weighed by expensive energy purchases from abroad. The Italian GDP was set to grow 0.8% this year should there be no growth for the rest of the year.