Italy
Post pandemic rebound has decelerated
Last update – January 2024
Country rating
MEDIUM RISK FOR ENTERPRISE
Economic risk
Business environment risk
Political risk
Commercial risk
Financing risk
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GDP | USD2.010bn (World ranking 10, World Bank 2022) |
Population | 59mn (World ranking 25, World Bank 2022) |
Form of state |
Republic |
Head of government |
Georgia Meloni (PM) |
Next elections |
2027, legislative |
Strengths & weaknesses
- Resilient private consumption despite high inflation and falling real wages
- Labor market keeps improving, with employment at a record high
- Good appetite for Italian sovereign bonds, helped by recent actions by rating agencies
- Investment has slowed but will be supported by NGEU projects implementation
- Declining inflation to provide some breathing room
- Italian banks have cleaned up their balance sheets and built-up stronger capital positions
- Fiscal consolidation under the spotlight
- Heavy red tape which hinders innovation and competitiveness
- Declining working-age population and demographic challenges ahead
- Efficient and timely allocation of EU funds is being tested
- Structural reforms needed in many areas
- Sovereign-bank nexus has reduced but not disappeared
Economic overview
Trade structure by destination/origin
(% of total, 2022)
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Exports | Rank | Imports | ||
Germany 12.4% | 1 |
13.7% Germany |
||
United States 10.4% | 2 |
8.9% China |
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France 10.0% | 3 |
7.3% France |
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Spain 5.1% | 4 |
5.6% Netherlands |
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Switzerland 4.9% |
5 |
4.6% Spain |
Trade structure by product
(% of total, 2022)
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Exports | Rank | Imports |
Other industrial machinery and parts 8.1% | 1 | 9.2% Gas, natural and manufactured |
Medicinal and pharmaceutical products 7.0% |
2 | 8.0% Petroleum, petroleum products and related materials |
Road vehicles 6.2% | 3 | 6.0% Road vehicles |
Specialised machinery 4.3% | 4 | 4.9% Medicinal and pharmaceutical products |
Iron and steel 4.2% |
5 |
4.2% Iron and steel |
Contact
Maddalena Martini
Allianz SE Branch Rome
Allianz SE Branch Rome