ROME (dpa-AFX) - Italy's economy shrank for the first time in two years as initially estimated in the second quarter, the latest data from the statistical office ISTAT showed Wednesday.
Gross domestic product dropped by 0.1 percent sequentially, in contrast to the 0.3 percent expansion in the first quarter. This was the first fall since the second quarter of 2023 and in line with the flash data published on July 30.
On the demand side, positive contributions from investment were offset by zero contribution from household and public sector consumption and public administration spending, Istat said.
Final consumption expenditure remained flat compared to the first quarter, while gross fixed capital formation, or investments, rose by 1.0 percent. Exports fell 1.7 percent, while imports were 0.4 percent higher.
On a yearly basis, economic growth softened to 0.4 percent from 0.7 percent in the first quarter, as estimated.
The carry-over annual GDP growth for 2025 was equal to +0.5 percent, confirming the flash data.
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