Italy's Economy Stalls in Third Quarter as GDP Misses Growth Forecast

Italy's economy recorded no growth in the third quarter of 2026, according to preliminary figures released by national statistics agency ISTAT on Friday, October 30. Gross domestic product was unchanged from the preceding three months, while output was 0.8% higher than in the same period of 2025.

The figures fell short of the modest expansion expected by economists. A Reuters survey had anticipated quarterly growth of 0.1% and a year-on-year increase of 0.9%. The outcome is a preliminary estimate rather than a final measurement and may be revised when fuller data become available.

The statistical result does not mean Italy's economy contracted: zero quarterly growth indicates that estimated economic output was broadly level with the preceding quarter. The positive annual comparison likewise means the economy remained larger than a year earlier, despite the loss of momentum in the latest three-month period.

The so-called acquired growth rate stood at 0.8% after the third quarter. That is the full-year increase implied if output remains unchanged in the final quarter; it is not a forecast that the fourth quarter will be flat. The government had recently raised its 2026 growth outlook to 1%, a projection that depends on subsequent economic performance.

The latest figures add to evidence of uneven growth across the euro area, where national results have diverged. They offer an early indication of Italy's July-to-September performance but do not yet provide a complete breakdown of household spending, investment and trade contributions.