Italian Economy Contracts Slightly in Second Quarter of 2025

Rome: In the second quarter of 2025, Italian GDP, adjusted for calendar effects and seasonally, decreased by 0.1% compared to the previous quarter, while it grew by 0.4% compared to the second quarter of 2024, Istat said Friday. The stats agency specified that today’s estimate confirms the preliminary data released on July 30.

According to Ansa News Agency, the quarterly decline in GDP in the second quarter marks a reversal of the negative trend compared to the 0.3% increase in the first three months of the year. Based on second-quarter data, the growth achieved for 2025, which would be achieved if GDP remained unchanged for the remainder of the year, is 0.5%.

The slight decline in GDP in the second quarter of 2025 is due to zero contributions from household and private social institutions (PSI) consumption and public administration spending, positive contributions from investment of 0.2 percentage points (with a 1% increase over the previous quarter) and changes in inventories of 0.4 points, compared to a
negative contribution from net foreign demand of 0.7 points.

Imports increased by 0.4% and exports decreased by 1.7%. In terms of value added, both agriculture, forestry, and fishing decreased by 0.6% and industry by 0.3%, while services remained stable.