The Italian economic output was flat in the second quarter, compared to the first quarter, presenting a challenge for the country's new expected government.
Seasonally and calendar-adjusted GDP growth in Europe's third-largest economy was at 0.0% for the second quarter, down from 0.1% during the previous quarter when it exited a technical recession, data from the National Institute of Statistics showed.
The latest print was in line with the Econoday consensus and preliminary estimates.
Final consumption expenditure remained stable, compared to the previous quarter, while gross fixed capital formation increased by 1.9%. Exports were up 1.0%, and imports increased 1.1% from the previous quarter.
Compared to a year ago, Italy's second-quarter GDP contracted 0.1%, in line with market expectations.
Agreeing on pro-growth policies will be one of the main challenges the new coalition government between Italy's Five Star Movement and the Democratic Party will face, said ING's Paolo Pizzoli before the GDP data was released.
"The Five Star Movement has so far failed to take a clear stance on this and recently reiterated their inclination to oppose big infrastructural projects, which may lead to conflict with the pro-growth Democrats," wrote Pizzoli, adding that there is less scope for short-term budgetary disruption.
