Rome, July 27 (QNA) - The General Confederation of Italian Industry (Confindustria) has issued a warning regarding the worsening outlook for Italy's economy, driven by escalating geopolitical tensions and heightened global uncertainty.

According to a report released by the confederation's research unit, the deceleration of Italy's gross domestic product (GDP) growth during the second quarter, coupled with international geopolitical friction, is casting a shadow over third-quarter economic performance. 'Confindustria' anticipates that persistent inflationary pressures and tight credit conditions will continue to weigh on the market.

The report noted that the renewed military escalation in the Middle East during July was quickly reflected in oil prices.

It pointed out that Italy's industrial sector continues to lose momentum after months of shocks, while investment is experiencing a noticeable slowdown.

Conversely, the report stated that the services sector has maintained a degree of stability, supported by a recovery in inbound tourism, although this has not yet translated into actual growth. (QNA)