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Italy's economy performed surprisingly poorly in the second quarter, data showed on Monday, offering an uncomfortable outlook for Prime Minister Giorgia Meloni as her government tries to tackle the negative impact of high inflation. Gross domestic product (GDP) contracted by 0.3% in the second quarter from the first, but was up 0.6% year-on-year, national statistics bureau ISTAT said. A Reuters survey of 17 analysts had pointed to a flat reading quarter-on-quarter and a 0.9% rise year-on-year.

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