Italy’s growth and employment contract in the second quarter

Brussels – Bad news for the Meloni government: in the second quarter of the year, both growth and employment recorded a “minus sign,” marking a deterioration compared with the first three months of 2025. Eurostat data released today (5 September) show an unfavourable period for the Italian economy in particular. While at a general level the Gross Domestic Product of the EU and Eurozone registers a timid rise (+0.2 percent and +0.1 percent, respectively) compared to the first quarter, in the reporting period, “declines were observed in Finland (-0.4 percent), Germany (-0.3 percent), and Italy (-0.1 percent),” the European Statistical Institute noted.

The economy is slowing after two quarters of consecutive growth. Compared to zero growth in Q3 2024, the government could boast +0.2 percent at the end of Q4 2024 and +0.3 percent at the end of the first three months of 2025. Now, however, the figure shows an economy that is once again in trouble and struggling. 

It does not get any better on the employment front: again, Italy and its labour market are among those recording a negative trend at the end of the second quarter. The situation is broadly stable, with a very slight increase in employment rates in Europe as a whole (+0.1 percent compared to January-March 2025) and the single currency area (+0.1 percent). However, Italy is bucking the trend and below average, with a contraction, albeit slight (-0.1 percent).

 Not good news, therefore, for the government, which is called upon to take stock of this data and to take corrective action and secure the national economic-productive fabric.