The Italian economy slowed to the slowest pace in almost two years

probably results in problems for the expensive projects of the populist government.

Gross domestic product rose 0.2% in the three months ending June, compared with 0.3% in the first quarter, reported Tuesday the Istat statistics agency in a preliminary report to Rome. . The latest figure coincides with the median estimate of 26 badysts in a Bloomberg survey.

This is the weakest quarterly growth since the third quarter of 2016. Istat pointed out that foreign trade is holding back economic expansion, while

the draft budget plan for the Italy is scheduled to be presented in Brussels in mid-October for consideration by the European Union.

Italy remains lagging behind the eurozone as a whole which in turn slowed to 0.3% growth in the second quarter, according to figures previously published on the day .

Political leaders in Rome will draw up a budget after the summer vacation when planned This increases tensions between the government parties. Italy's draft budget plan is expected to be submitted to Brussels in mid-October for consideration by the European Union.

In another potential problem, Istat said that the Italian unemployment rate rose from 10 to 10.9% in June. Deputy Prime Minister Luigi Di Maio and Matteo Salvini insisted that their plans to lower taxes and support the incomes of the poor be continued. Finance Minister Giovanni Tria says he supports these plans, while insisting that the country must live within its financial means.

The Italian unemployment rate rose from 10.7% to 10.9% in June. The total implementation of the government program could cost up to 126,000 million euros ($ 148,000 million) in its first year, according to Carlo Cottarelli, former director of the International Monetary Fund.

Italy has suffered for years from almost stagnation and the European Commission confirmed earlier this month that it expected the country to experience the highest growth rate of the 19 eurozone countries this year and next year.