Economy of Italy

Italy has a highly developed social market economy. It is the third-largest national economy in the European Union and the 8th-largest economy in the world by nominal GDP. The country has the second-largest manufacturing industry in Europe and the 7th-largest in the world. Italy is a great power and a founding member of many important international groups, including the European Union, the eurozone, the Schengen Area, the OECD, the G7, and the G20.

In the years after World War II, Italy changed from an economy based mostly on farming into one of the world's most advanced nations. Today, Italy enjoys a very high standard of living and has the world's 8th highest quality of life. The country owns the world's third-largest gold reserve and is a big contributor to the budget of the European Union.

Italy is well known for making and selling many different products, such as machinery, vehicles, medicines, furniture, food, and clothing. It is especially famous for its high-quality and creatively designed goods, including cars, ships, home appliances, and designer clothing. Italy is also the largest producer of wine in the world and a major hub for luxury goods in Europe.

However, Italy's economy faces some challenges. Growth rates have often been lower than the European Union average, and public debt is very high. There is also a big difference between the richer northern regions and the poorer southern regions. Some jobs in Italy are informal, meaning they are not officially recorded, which can affect economic statistics.

History

Main articles: Economic history of Italy and Economic history of pre-unitarian Italy

The Italian Renaissance helped cities like Venice and Genoa become important in trade. They were great at sea travel and business. Later, cities like Milan and Florence also grew. Venice was one of the first places to handle money and trade in new ways during the 9th to 15th centuries.

After 1600, Italy faced tough times. Once a strong area in Europe, it became poorer. By 1870, Italy was struggling with not enough money and resources. Wars and political problems made things worse.

The history of Italy’s economy after 1861 has three parts. First, a hard time after the country joined together, with many people leaving and slow growth. Then, from the 1890s to the 1980s, things improved a lot, except during the hard times of the 1930s and the world wars. Finally, growth slowed down again after 2008, but Italy is slowly getting better.

Age of Industrialization

Before Italy joined together, most people worked on farms. But starting in the 1820s, farms in the north started making more, which helped create factories. This happened especially in Piedmont-Sardinia under a leader called the Count of Cavour.

After Italy became one country in 1861, people knew they were behind other places like Britain, France, and Germany. In the 1860s and 1870s, factories were small, and most people worked on farms. Italy didn’t have much coal or iron, and many people couldn’t read or write. In the 1880s, new farming methods were tried in the Po valley, and rules were made to help build big factories. Steel and iron factories grew near places with lots of water power, like in the Alps. Turin and Milan became busy with textiles, chemicals, and banking, while Genoa built ships for both peace and war.

Fascist regime (1922-1943)

The Barsanti-Matteucci engine, the first proper internal combustion engine

After World War I, Italy was weak and poor. In 1922, a group led by Benito Mussolini took control. They changed the economy to focus more on the government and working with businesses together. This helped Italy deal with problems like the Great Depression in 1929.

War Economy (1939-1943)

Italy joined World War II and had to set up a war economy. When the Allies invaded Italy in 1943, the country’s economy fell apart. By the end of the war, Italy’s money was at its lowest since the 1900s.

Post-war Economy (1945-1947)

After World War II, Italy was destroyed and divided. The country left behind old ideas and started as a new democracy. The economy began to heal, but many people left the country.

Post-war reconstruction (1948-1955)

After World War II, Italy was in ruins. The United States helped Italy with money through the Marshall Plan, which gave over US$1.2 billion from 1947 to 1951. This help came just as the Korean War began, which needed lots of supplies and helped Italy’s factories grow.

Economic rebuild (1956-1959)

Terni steel mills in 1912

In the mid-1950s, Italy’s economy got stronger. People who had left during hard times started coming back. Joining the European Common Market in 1957 brought more money and helped Italy sell things abroad. This led to big growth.

Economic miracle (1960-1970)

Main article: Italian economic miracle

With lots of workers and good conditions, Italy’s economy grew very fast from 1951 to 1973. Growth was about 5.8% each year from 1951 to 1963, and 5% each year from 1964 to 1973. Italy was growing almost as fast as West Germany, and only Japan was better among European countries.

The 1970s and 1980s: from stagflation to "il sorpasso"

The 1970s were hard times for Italy with unrest and high prices. By 1977, one million young people had no jobs. Prices kept going up, especially for oil in 1973 and 1979. Italy’s money lost value. In the 1980s, new rules helped reduce high prices, and small businesses made things like clothes and shoes. By 1987, Italy passed the UK in wealth, becoming the fourth richest country. The stock market in Milan grew a lot.

The Great Recession (2008-2013)

Italy was hit hard by the Great Recession from 2008 to 2009. The economy shrank by 6.76%. In 2011, Italy’s borrowing costs got very high. By 2015, Italy’s government owed a lot, more than Greece. But most of this debt was owned by Italians, and the country had lots of savings. To fix things, Italy made strict cuts, which caused another recession in 2012 and 2013.

Economic recovery (2014-2019)

From 2014 to 2019, Italy’s economy started to get better, mainly by selling things abroad. But growth was slower than other European countries, and by 2019, Italy’s economy was still smaller than in 2008.

Economic impact of COVID-19 pandemic (2020-2021)

Starting in February 2020, Italy was the first in Europe to face the COVID-19 pandemic. The economy took a big hit from closing down businesses. By May 2020, things started to improve. Italy got help from the European Union through the Next Generation EU fund, getting €209 billion.

Economic resilience (2022-2024)

After the COVID-19 pandemic, Italy’s economy got stronger again. But it had to deal with high energy prices because of the Russian invasion of Ukraine in 2022. Italy found new energy sources and made changes to handle these problems. In 2024, Italy kept growing, even with world tensions.

Longevity Economy (2025-present)

Italy’s economy is changing. Even with fewer people, new technology like robots can help. Italy is becoming stronger and more flexible.

On 23 May 2025, Moody's kept Italy’s rating at Baa3 but made the outlook better. Italy’s public debt is managed well, and families save a lot. Even Southern Italy is growing more now.

Benito Mussolini giving a speech at the Fiat Lingotto factory in Turin, 1932

On 10 October 2025, S&P kept Italy’s rating at BBB+ with a stable outlook. Italy’s gold, worth a lot, also helps ensure the country’s financial safety. On 21 November 2025, Moody's raised Italy’s rating to Baa2. On January 30, 2026, S&P kept the rating at BBB+ but changed the outlook to positive.

Economic impact of 2026 Iran War (2026-present)

In early 2026, Italy kept growing. But then the 2026 Iran War started on 28 February 2026. This war raised oil and gas prices around the world. Italy changed where it gets its gas, mostly from Algeria now, and put protections on electricity and fuel prices. Italy also plans to use more renewable energy and build nuclear fusion reactors to avoid future energy problems.

Gold

Main articles: Gold Reserve and Bank of Italy

Most of Italy's gold reserves, about 2,451.8 tons, are kept by the Bank of Italy. This gold is worth about 274 billion euros as of December 2025. Italy’s gold helps make sure the country’s money is safe. Italy is also good at making luxury goods and fashion, including Jewellery.

On 22 December 2025, gold prices went above $4,400 an ounce. On 12 January 2026, gold hit $4,600 an ounce. On 28 January 2026, gold reached over $5,200 an ounce. But on 29 January 2026, gold went past its old record to nearly $5,600 an ounce.

Currency

Main articles: History of coins in Italy, Italian lira, Istituto Poligrafico e Zecca dello Stato, and Italian euro coins

Italy has a long history of different coinage types, going back thousands of years. The Florentine florin from Florence in the 13th century was very important in Europe. The Venetian sequin was a famous gold coin from 1284 to 1797.

Italy used different coins for many years. When Italy joined together in 1861, it started using the Italian lira until 2002. In 1999, Italy started using the euro, and the lira was replaced by the euro in 2002.

Overview

Data

The following table shows the main economic indicators in 1980–2023 (with IMF staff estimates in 2024–2029). Inflation below 5% is in green.

Companies

Further information: List of companies of Italy and List of largest Italian companies

Italian Companies on 2024 Fortune Global 500 List

This list displays all 5 Italian companies on the Fortune Global 500 List, which ranks the world's largest companies by annual revenue. The figures below are given in millions of US dollars and are for the fiscal year 2018. Also listed are the headquarters location, net profit and industry sector of each company.

In 2022, the sector with the highest number of companies registered in Italy is Services with 654,065 companies followed by Retail Trade and Finance, Insurance, and Real Estate with 519,448 and 348,881 companies respectively.

Wealth

Further information: List of Italian billionaires and List of Italians by net worth

Italy has 1.3 million people with a net wealth greater than $1 million, a total national wealth of $11.020 trillion, and represents the 9th largest cumulative net wealth globally (it accounts for 2.4% of the net wealth in the world). According to the UBS's Global Wealth Databook 2024, the median wealth per adult is $113,754 (14th in the world), while according to the Allianz's Global Wealth Report 2024, the net financial wealth per capita is €76,930 (14th in the world).

The following top 10 list of Italian billionaires is based on an annual assessment of wealth and assets compiled and published by Forbes in 2017.

Regional data

Further information: List of Italian regions by GDP

Southern question

Main article: Southern question

In the decades following the unification of Italy, the northern regions of the country, Lombardy, Piedmont and Liguria in particular, began a process of industrialization and economic development while the southern regions remained behind. After the rise of Benito Mussolini, efforts were made to help develop the South, but these did not fully succeed. Today, the South still has a lower income level than the North, although the cost of living is also lower. The unemployment rate in the South is more than double that of the North. Some experts believe that certain challenges in the South have held back its growth.

Year	GDP (in Bil. US$PPP)	GDP per capita (in US$ PPP)	GDP (in Bil. US$nominal)	GDP per capita (in US$ nominal)	GDP growth (real)	Inflation rate (in Percent)	Unemployment (in Percent)	Government debt (in % of GDP)
1980	614.4	10,895.8	482.7	8,559.5	3.1%	21.8%	7.4%	n/a
1981	676.3	11,973.7	437.7	7,749.8	0.6%	19.5%	7.6%	n/a
1982	719.2	12,723.3	432.6	7,652.9	0.2%	16.5%	8.3%	n/a
1983	754.2	13,334.6	448.9	7,936.2	0.9%	14.7%	7.4%	n/a
1984	805.0	14,231.6	443.5	7,840.8	3.0%	10.7%	7.8%	n/a
1985	852.2	15,060.2	458.0	8,093.6	2.6%	9.0%	8.2%	n/a
1986	893.0	15,777.1	648.7	11,461.2	2.7%	5.8%	8.9%	n/a
1987	943.1	16,664.2	814.2	14,385.8	3.1%	4.7%	9.6%	n/a
1988	1,015.7	17,942.2	902.0	15,934.2	4.0%	5.1%	9.7%	95.2%
1989	1,089.9	19,238.7	938.1	16,560.6	3.3%	6.2%	9.7%	97.9%
1990	1,153.1	20,338.1	1,170.8	20,651.8	2.0%	6.4%	8.9%	101.1%
1991	1,209.2	21,309.8	1,236.8	21,795.7	1.4%	6.2%	8.5%	104.7%
1992	1,245.7	21,941.9	1,312.4	23,116.6	0.7%	5.0%	8.8%	112.3%
1993	1,264.6	22,255.4	1,055.3	18,572.9	-0.8%	4.5%	9.8%	123.4%
1994	1,318.4	23,193.6	1,088.5	19,149.5	2.1%	4.2%	10.6%	130.1%
1995	1,382.1	24,314.4	1,175.3	20,675.3	2.7%	5.4%	11.2%	119.4%
1996	1,425.3	25,073.3	1,312.8	23,094.4	1.3%	4.0%	11.2%	119.1%
1997	1,476.4	25,957.8	1,243.2	21,858.5	1.8%	1.8%	11.2%	116.8%
1998	1,520.0	26,712.1	1,271.7	22,348.1	1.8%	2.0%	11.3%	114.1%
1999	1,566.5	27,526.6	1,253.7	22,029.7	1.6%	1.7%	10.9%	113.3%
2000	1,662.7	29,208.9	1,147.2	20,153.1	3.8%	2.6%	10.1%	109.0%
2001	1,733.3	30,429.9	1,168.0	20,505.9	2.0%	2.3%	9.1%	108.9%
2002	1,764.8	30,964.9	1,275.9	22,386.3	0.3%	2.6%	8.6%	106.4%
2003	1,802.1	31,513.1	1,577.2	27,580.5	0.1%	2.8%	8.5%	105.5%
2004	1,876.8	32,577.2	1,805.7	31,342.8	1.4%	2.3%	8.0%	105.1%
2005	1,951.5	33,621.3	1,859.2	32,031.4	0.8%	2.2%	7.8%	106.6%
2006	2,047.8	35,131.2	1,949.7	33,448.1	1.8%	2.2%	6.9%	106.7%
2007	2,134.4	36,478.4	2,213.4	37,828.3	1.5%	2.0%	6.2%	103.9%
2008	2,154.4	36,513.9	2,408.4	40,819.0	-1.0%	3.5%	6.8%	106.2%
2009	2,053.7	34,561.9	2,197.5	36,982.8	-5.3%	0.8%	7.9%	116.6%
2010	2,114.0	35,415.9	2,137.8	35,815.6	1.7%	1.6%	8.5%	119.2%
2011	2,173.2	36,250.6	2,294.6	38,276.0	0.7%	2.9%	8.6%	119.7%
2012	2,172.4	36,143.0	2,088.3	34,743.8	-3.0%	3.3%	10.9%	126.5%
2013	2,187.4	36,288.5	2,142.0	35,535.0	-1.8%	1.2%	12.4%	132.5%
2014	2,200.3	36,460.7	2,162.6	35,836.2	0.0%	0.2%	12.8%	135.4%
2015	2,241.5	37,175.6	1,836.8	30,463.7	0.8%	0.1%	12.0%	135.3%
2016	2,420.4	40,230.7	1,876.6	31,190.8	1.3%	-0.1%	11.7%	134.8%
2017	2,529.5	42,111.5	1,961.1	32,648.8	1.7%	1.3%	11.3%	134.2%
2018	2,613.9	43,610.3	2,092.9	34,917.6	0.9%	1.2%	10.6%	134.4%
2019	2,674.0	44,702.9	2,011.5	33,627.9	0.5%	0.6%	9.9%	134.1%
2020	2,461.9	41,279.1	1,891.1	31,707.1	-9.0%	-0.1%	9.3%	155.3%
2021	2,734.6	46,164.6	2,101.3	35,472.8	8.3%	1.9%	9.5%	150.9%
2022	3,345.9	56,682.0	2,104.6	35,653.8	4.0%	8.7%	8.1%	138.1%
2023	3,490.5	59,164.5	2,301.6	39,012.0	0.9%	5.9%	7.6%	134.5%
2024	3,597.9	60,992.8	2,376.5	40,286.8	0.7%	1.2%	7.0%	136.8%
2025	3,691.2	62,603.0	2,459.5	41,714.4	0.8%	2.1%	7.1%	138.6%
2026	3,786.0	64,262.3	2,534.5	43,020.0	0.7%	2.0%	7.3%	140.1%
2027	3,878.5	65,905.6	2,595.7	44,108.3	0.6%	2.0%	7.4%	141.3%
2028	3,976.4	67,663.9	2,663.6	45,325.3	0.7%	2.0%	7.5%	141.9%
2029	4,078.0	69,507.6	2,736.1	46,635.8	0.7%	2.0%	7.6%	142.3%

Rank	Fortune 500 rank	Name	Industry	Revenue (USD millions)	Profits (USD millions)	Employees	Headquarters
1	98	Enel	Electric utility	103,311	3,717	61,055	Rome
2	97	Eni	Oil and gas	102,502	5,158	33,142	Rome
3	245	Assicurazioni Generali	Insurance	57,023	4,051	81,879	Trieste
4	283	Intesa Sanpaolo	Finance	52,004	8,351	94,368	Turin
5	314	UniCredit	Banking	48,044	10,278	70,752	Milan

Rank (World)	Rank (Italy)	Name	Net Worth ($bn)	Main source	Main sector
29	1	Maria Franca Fissolo Ferrero & family	25.2	Ferrero SpA	Food
50	2	Leonardo Del Vecchio	17.9	Luxottica	Eyewear
80	3	Stefano Pessina	13.9	Walgreens Boots	Pharmaceutical retail
133	4	Massimiliana Landini Aleotti	9.5	Menarini	Pharmaceutical
199	5	Silvio Berlusconi	7.0	Fininvest	Financial services
215	6	Giorgio Armani	6.6	Armani	Fashion
250	7	Augusto & Giorgio Perfetti	5.8	Perfetti Van Melle	Confectionery
385	8	Paolo & Gianfelice Rocca	3.4	Techint	Conglomerate
474	9	Giuseppe De'Longhi	3.8	De'Longhi	Small appliance
603	10	Patrizio Bertelli	3.3	Prada	Apparels

2024-2025 Gross Domestic Product in Italy
Rank	Region	2024 GDP €m	2022 GDP €m	% of Nation	€ per capita (2024)
–	Italy	2,199,619.4	1,946,479	100.00	37,308
1	Lombardy	504,729.96	439,986.38	22.94	50,398
2	Lazio	246,486.53	212,911.42	11.20	43,166
3	Veneto	201,245.73	180,173.48	9.14	41,496
4	Emilia-Romagna	198,395.23	176,844.9	9.01	44,557
5	Piedmont	164,165.06	145,913.79	7.46	38,625
6	Tuscany	143,563.3	128,308.37	6.52	39,262
7	Campania	137,510.98	119,467.68	6.25	24,564
8	Sicily	112,029.68	97,124.1	5.09	23,308
9	Apulia	94,507.89	85,960.7	4.29	24,327
10	Liguria	58,958.93	53,854.51	2.68	38,841
11	Marche	50,509.69	45,859.37	2.29	34,149
12	Friuli-Venezia Giulia	46,601.88	43,048.67	2.11	39,005
13	Sardinia	43,467.53	37,978.08	1.97	27,730
14	Abruzzo	40,760.57	34,572.45	1.85	32,108
15	Calabria	40,003.45	36,081.42	1.81	21,702
16	South Tyrol	33,079.54	29,106.27	1.50	61,601
17	Umbria	27,673.58	24,264.04	1.25	32,466
18	Trentino	26,055.72	24,002.76	1.18	47,764
19	Basilicata	15,083.47	13,966.85	0.68	28,416
20	Molise	7,986.7	7,219.42	0.36	27,697
21	Aosta Valley	5,852.16	5,404.03	0.26	47,742

Economic sectors

Primary

Main article: Agriculture in Italy

Italy has many farms, most of which are small and family-run. These farms grow a variety of crops including grains, olives, grapes, citrus fruits, and sugar beets. The country is famous for its wine and olive oil production. Italy also raises livestock such as cattle, pigs, sheep, and goats. The fishing industry contributes to the economy as well.

Secondary

Main pages: Automotive industry in Italy, Chemical industry in Italy, Steel industry in Italy, Category:Defence companies of Italy, Category:Engineering companies of Italy, and Category:Shipbuilding companies of Italy

Italy is known for its manufacturing, especially in making high-quality goods. The country has many small and medium-sized businesses that focus on creating specialty and luxury products. The automotive industry is strong, with famous brands producing cars and motorcycles. These industries help Italy export many of its products around the world.

Tertiary

Main pages: Italian Bourse, List of banks in Italy, Tourism in Italy, Real estate in Italy, Italian fashion, Education in Italy, Healthcare in Italy, Telecommunications in Italy, Category:Service industries in Italy, and List of Italian brands

Services are the biggest part of Italy’s economy, employing most people and creating much of the country’s value. Tourism is very important, with many people visiting Italy for its culture, history, food, and beautiful places. Banking and finance also play a big role, with Italy having a long history in these areas. The Italian stock exchange in Milan helps manage money and investments.

Infrastructure

Energy and natural resources

Main articles: Energy in Italy and Renewable energy in Italy

Italy used about 185 Mtoe of primary energy in 2010. Most of this energy came from fossil fuels. Important resources included petroleum for transportation, natural gas for electricity and heating, coal, and renewables. Electricity in Italy is mainly produced from natural gas, which provides more than half of the country's electricity. Another key source is hydroelectric power, which was the main source of electricity until 1960.

Eni is one of the world's largest oil companies, operating in 79 countries. The Val d'Agri area in Basilicata holds Europe's largest onshore hydrocarbon field. Italy also has moderate natural gas reserves in the Po Valley and the offshore Adriatic Sea.

Italy imports most of its raw materials and over 80% of its energy. Because of this, Italians pay about 45% more for electricity than the average in the European Union.

In recent years, Italy has become a leading producer of renewable energy. It ranks second in the European Union and ninth in the world for renewable energy use. Wind power, hydroelectricity, and geothermal power are important sources of electricity. Italy was the first country to use geothermal energy for electricity, with the first plant built in Tuscany. In 2014, geothermal production was 5.92 TWh.

Solar energy alone made up almost 9% of Italy's total electricity in 2014, making Italy a leader in solar power. The Montalto di Castro Photovoltaic Power Station, finished in 2010, is Italy's largest solar power plant.

Renewable sources now provide 27.5% of Italy's electricity, with hydro power at 12.6%, solar at 5.7%, wind at 4.1%, bioenergy at 3.5%, and geothermal at 1.6%. The rest comes from fossil fuels and imports.

Italy had nuclear reactors until the 1980s, but after the Chernobyl disaster, most Italians voted to stop using nuclear power. The government closed nuclear plants and stopped new projects. However, Italy's national power company Enel still operates nuclear reactors in other countries.

Italy used to produce minerals like pyrites, asbestos, fluorite, and salt. By the 1990s, it no longer produced these in large amounts. Italy does not have much iron, coal, or oil but is known for minerals like pumice, pozzolana, feldspar, and famous white Carrara marble from Tuscany.

Transportation

Main article: Transport in Italy

Italy has an extensive road network. In 2002, there were over 668,000 km of roads, including 6,487 km of motorways. These motorways, called autostrade, were the first of their kind in the world. The Autostrada dei Laghi, connecting Milan to Lake Como and Lake Maggiore, opened in 1924.

Italy also has a large railway network, with over 16,000 km of tracks. Most of these tracks are electrified, and the network is operated by Ferrovie dello Stato. Italy has high-speed trains that can reach speeds of up to 400 km/h. These trains connect major cities like Milan, Rome, and Naples.

Since October 2021, ITA Airways has been Italy's main airline. It took over from Alitalia and serves many destinations. Italy also has regional airlines, low-cost carriers, and cargo operators. There are about 130 airports in Italy, with major hubs in Rome and Milan.

Italy has important seaports, such as the Port of Genoa, which is the country's largest and one of the busiest in the Mediterranean Sea. With the growth of trade along the Silk Road, Italian ports have become even more important for connecting Europe with Asia and Africa. The port of Trieste has received many investments due to its strategic location. Italy also has a network of navigable rivers and channels.

Water supply and sanitation

Main article: Water supply and sanitation in Italy

Science and technology

Main article: Science and technology in Italy

Italy has made important contributions to science and technology. The country is known for its work in areas like robotics, artificial intelligence, and biotechnology. Many smart people in Italy work hard to find new ways to solve problems and make life better for everyone.

Government finance

Main articles: Taxation in Italy, Italian government debt, and Italian welfare state

Italy has a well-organized system for managing its money and resources. The country collects taxes to fund important services like schools, hospitals, and public safety. Italy also has a significant amount of debt, which means it owes money that it needs to pay back over time. The welfare state helps provide support to people who need it, such as those who are sick, unemployed, or elderly.

Trade and investments

Main articles: List of exports of Italy and List of the largest trading partners of Italy

Italy is good at making many things and trading them with other countries. It has lots of factories where people build products that are sold around the world. Other countries also buy and sell many goods with Italy, making it an important part of global trade.

Poverty

Main article: Poverty in Italy

In 2015, Italy saw its highest poverty levels in ten years. Many families struggled to meet basic needs, with costs varying across different regions. More people faced financial hardship, especially in Southern Italy, where the situation was tougher than in Northern Italy.

Even having a job did not always mean escaping poverty, and many young people faced especially hard times finding work. Children were also greatly affected, with many at risk of missing out on important support. Recent reports show that millions of people in Italy still live with limited resources, making it challenging to cover everyday expenses.

Nobel Prizes

Main article: List of Italian Nobel laureates

Swiss Nobel laureates
Year	Image	Laureate	Born	Died	Field	Rationale
1985		Franco Modigliani	18 June 1918 in Rome since 1946 also American citizen	25 September 2003 in Cambridge, United States	Economics	"for his pioneering analyses of saving and of financial markets"