Italian exports lose momentum in July as EU demand falters
Italian exports slowed in both monthly and annual terms in July, as demand from European Union partners contracted sharply while sales to markets beyond the bloc expanded. The Italy National Institute of Statistics (Istat) estimates that exports grew just 0.3% month-on-month in July, a marked deceleration from the 1.6% growth recorded in June. Imports, meanwhile, fell by 1.2%.
The monthly figures reveal a stark divergence in trade flows. While exports to non-EU countries surged 6.9%, sales to EU partners dropped by 5.6% on a monthly basis. The picture is similar on an annual basis: exports grew 4.7% in value year-on-year, but shrank 1.7% in volume — a gap that reflects rising prices for Italian goods abroad. On an annual basis, non-EU markets grew 6.6% in value, more than twice the 2.7% growth seen in EU markets.
What drove the growth
Several sectors posted strong annual gains. Coke and refined petroleum products led with a 27.3% increase, while basic metals and metal products (excluding machinery) rose 13.8%. Sporting goods, games, musical instruments, jewelry, and medical instruments collectively grew 15.9% on an annual basis.
Not all sectors shared in the gains. Transport equipment excluding motor vehicles fell 2.5% on the year, a weak point in an otherwise positive picture for industrial exporters.
Among trading partners, Switzerland posted the strongest gain at 39.6%, followed by China at 27.6% and OPEC countries at 26.3%. By contrast, exports to ASEAN nations fell sharply, dropping 26.9% on an annual basis.
Trade surplus widens despite energy deficit
Italy's trade balance for July stood at a surplus of €8.24 billion, up from €7.83 billion in July 2025. The non-energy trade surplus widened from €11.95 billion to €13.76 billion, reflecting strong industrial sales abroad. However, the energy deficit deepened to €5.52 billion, up from €4.12 billion a year earlier, as Italy imported more expensive energy to meet domestic needs.
Broader trends remain positive. In the May–July quarter, exports grew 1.3% while imports rose 2.8%. Over the first seven months of 2026, exports are up 4.6%, slightly outpacing import growth of 4.3%.
Regional and European context
Within Italy, the second quarter showed uneven growth. The South and Islands led with 6.5% quarterly export growth, while the North-East grew 3.1% and the North-West 2.9%. Central Italy, however, contracted 1.6%.
Across Europe, export trends have diverged. Germany posted 2% quarterly export growth in the second quarter, while France recorded 3.1%. Italian exports for the quarter stood at 2.2%, below France but above Germany. However, broader Eurozone growth is slowing: the European Economic Outlook from KPMG projects GDP growth of just 1.0% in 2026, down from 1.4% in 2025. Weak consumer confidence in France and Germany, coupled with geopolitical tensions affecting energy supplies, continues to weigh on the region.
Istat will release its next set of foreign trade and import price data on 16 October 2026. No forecasts for August exports have yet been published.
