Italy

Macro-economic clouds are hovering over Italy. The International Monetary Fund has adjusted its GDP growth projection to 0.7% relative to the fourth quarter of 2024, below the still-weak expectations of the Eurozone (+1%). The same uncertainty is also reflected by the Bank of Italy which, in its latest economic bulletin, highlighted weak growth and the struggles to regain strength, estimating a GDP increase of 0.8% for 2025 in a context of high uncertainty.

However, it should also be mentioned that public expenditure during the third quarter of last year reached Euro 91.4 billion and household consumption increased by 1.7% while spending on gross fixed investments amounted to more than Euro 107 billion, with a variation equal to 31.6%.

In 2024, electric vehicle production expanded by 40% compared to 2022, with a 25% increase in the charging infrastructure. Italy’s National Recovery and Resilience Plan (the PNNR) has allocated over Euro 59 billion to the ecological transition, with a focus on the south where 60% of energy could be derived from renewable sources by 2030.

On the digital transition front, however, Italy needs to accelerate adoption, especially in small and medium-sized enterprises which make up a large proportion of the country’s entrepreneurial fabric. Although these are gradually integrating advanced technologies such as cloud-based management systems and data analysis tools, only 35% use advanced technologies, limiting the country’s competitiveness in the global market.

In other developments, exports from Italy to Africa have increased by some 20% over recent times.

Meanwhile, Italians’ private financial wealth has been on a growth trend since 2013 and this phenomenon appears destined to continue: today, Italy is considered one of the most attractive destinations for highly wealthy individuals who transfer their residence to this country in order to benefit from the favourable tax regime introduced in 2017.

Over the last decade, the financial wealth of Italian families has recorded double-digit growth, marked by a polarisation of high-value segments. In the context of wealth concentration in the hands of people with high investable financial assets and an average age generally above 65, the issue of inter-generational transfer of wealth becomes key: forecasts for the next decade see increases in wealth of 13% for those under 25 and of 24% for individuals aged between 25 and 40.