ROME, Aug 6 (Reuters) - Italy's statistics agency will on Wednesday report a 0.1 percent contraction in the economy in the second quarter, two Italian newspapers reported, meaning Italy would have fallen back into a recession. Separately, Economy Minister Pier Carlo Padoan said in an interview that Italy will not need to pass an emergency supplementary budget in 2014 despite signs growth will be well below the forecast used to plan this year's budget. Padoan told business daily Il Sole 24 Ore that despite signs of weakening growth, Italy would report a budget deficit within the European Union's ceiling of 3 percent of gross domestic product. "The 3 percent limit will not be breached in 2014 or in 2015. There will be no need for a supplementary budget," he told the newspaper, adding that he made the statement "on the basis of information which I have at the moment and on the forecasts which we have updated with new information from ISTAT." Stats body ISTAT is due to report growth figures for the second quarter on Wednesday with forecasts from a Reuters poll of economists pointing to growth of just 0.2 percent after a contraction of 0.1 percent in the first quarter. Without citing their sources, Italian dailies La Repubblica and Corriere della Sera said that ISTAT would report a 0.1 percent contraction, increasing pressure on Prime Minister Matteo Renzi's government. The government's official forecast for 2014 remains 0.8 percent with a budget deficit of 2.6 percent of GDP but both Padoan and Renzi have said conditions have turned out worse than expected. Both have previously ruled out any supplementary budget. Forecasts for economic growth in 2014 have become steadily more gloomy, fuelling growing speculation that the government would not be able to meet its deficit goal and may even struggle to come in under the European Union's 3 percent ceiling. Last month, the Bank of Italy cut its growth forecast to just 0.2 percent for 2014 and said it saw "approximately stationary" growth in the second quarter, in line with forecasts from other bodies including the International Monetary Fund and the Organisation for Economic Cooperation and Development Renzi has announced ambitious labour and tax reforms to revive growth as well as a sweeping overhaul of the justice system, the bloated public administration and Italy's system of government. But beyond an 80-euro-per-month tax break for millions of low income workers, he has yet to translate his promises into action. After dipping in an out of recession for year, Italy's economy has contracted by 9 percent since the start of the global financial crisis in 2007, the Bank of Italy said last month. "Italy is struggling to emerge from the crisis because it has built up structural obstacles. There are no shortcuts to get back to growth: we have to remove the obstacles with structural reforms," Padoan said. (Reporting by James Mackenzie; Editing by Toby Chopra) ((james.mackenzie@thomsonreuters.com; +39 0685224351; Reuters Messaging: Reuters Messaging james.mackenzie.reuters.com@reuters.net)) Keywords: ITALY ECONOMY/