Italy's GDP stalls in Q3 2024, missing growth targets and forecasts

Italy’s gross domestic product (GDP) stagnated in the third quarter of 2024, showing no growth compared to the previous quarter.

Italy's GDP stalls in Q3 2024, missing growth targets and forecasts

This follows a 0.2% increase in the June quarter and falls short of market expectations for another 0.2% rise. It marks the first period of zero growth since the slight contraction in June 2023, reflecting the impact of higher borrowing costs imposed by the European Central Bank. Net foreign demand adversely affected the GDP, which outweighed gains from increased inventory levels.

Italy's GDP stagnation threatens 1% growth target, slowing to 0.4%

This stagnation diminishes the likelihood that Italy will meet its government target of 1% growth for the year and puts additional pressure on the goal of maintaining a budget deficit of 3.8%, already below the EU’s 3% target. Year-on-year, Italy’s GDP grew by just 0.4% in the third quarter, the slowest growth rate since December 2020.