Despite reaching the past four for the fourth tournament running, they are still to end their wait for a trophy, which stretches back to Euro 96.
Although they were expected to provide a much stiffer test than England, in fact, it was easier for Italy, who ended Germany's 15-match winning streak in competitive matches.
"We've had two great years," said Low.
"The team has really developed well. We won 15 games in a row but lost today [Thursday] against an incredibly strong Italian side, with a strong axis and two great strikers.
"There's no reason to doubt ourselves. Our team was the youngest team here.
Low feels his side must now focus on bouncing back from the defeat.
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"Even though there's disappointment today, we played a wonderful tournament and I am sure we will be able to cope with this defeat."
"We had two goals against us in the first half and it was difficult. The team showed a lot of heart after that," he said.
"We had our chances in the second half, if we had got the goal sooner it would have been a different match.
"It's very difficult against a team like Italy to fall behind 2-0. They defend with everything they have.
"The disappointment is huge for everyone but we shouldn't make the mistake and question everything. We've got to see how we can do better in the future."