ROME (Reuters) -The Italian economy unexpectedly shrank by 0.1% in the second quarter compared to the first, preliminary data showed on Wednesday, possibly reflecting the early impact of a rise in U.S. tariffs and global trade uncertainty.
Gross domestic product in the euro zone's third-largest economy grew 0.4% in the second quarter on the year, national statistics bureau ISTAT said, missing expectations of economists surveyed by Reuters for growth of 0.6%.
The 23 economists had expected 0.1% growth
on the quarter.
Giorgia Meloni's government in April halved its 2025 growth forecast to 0.6% from a 1.2% target set in September, amid mounting uncertainty due to changes in U.S. tariff policy.
The quarterly GDP decrease between April and June was due to negative trade flows that offset domestic demand, ISTAT said.
The statistics bureau gave no numerical breakdown of components with its preliminary estimate, but said industry and agriculture both showed a decrease in output, with services output being little changed.
In the euro zone, preliminary data on Wednesday showed that German GDP shrank by 0.1% in the quarter compared to the previous three months, in line with forecasts, whereas the French economy grew 0.3% from the previous three months, beating expectations.
Italy's first-quarter GDP growth estimate was unrevised at 0.3% from the preceding quarter and 0.7% year-on-year, ISTAT said.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Cristina Carlevaro and Bernadette Baum)
