“Unveiling Italy’s Economic Potential” is now online — a report prepared by Confindustria that highlights the strengths of the Italian economy and the significant progress made in recent years. The report emphasizes how Italy has seen a substantial increase in foreign investments, which grew by 44% between 2015 and 2023, rising from approximately 300 billion euros to over 450 billion euros. To read the study, click HERE.
The document realized by Confindustria (the General Confederation of the Italian Industry, main organization representing manufacturing and service companies in Italy) in collaboration with the Italian Ministry of Foreign Affairs and International Cooperation shows the strengths of the Italian economy and how Italy has recorded a significant increase in foreign investment, which grew by 44% between 2015 and 2023 – from approximately 300 billion euros to over 450 billion euros.
The report focuses on the key strengths of the Italian economy:
* Economic Growth: Between 2018 and 2023, Italy recorded an average annual GDP growth of +1.0%, outperforming the main European economy, Germany, which grew by +0.3%. This positive trend highlights the resilience of the Italian economy in the face of global shocks such as the COVID-19 pandemic and the conflicts in Ukraine and the Middle East.
* Strong Growth in Productive Investment: From 2019 to 2024, productive investment in Italy increased by 17.8%. This growth reflects a climate of optimism and the ongoing renewal of the country’s industrial base.
* Outstanding Export Performance: Italian exports grew by 45% from 2015 to 2024. Italy ranks second in the EU for manufacturing exports and fourth globally in terms of the number of products for which it is the leading exporter. This demonstrates the strong international competitiveness of Italian industry, its high degree of product diversification, and an overall favorable environment for manufacturing activities.
* Highly Productive Manufacturing Sector: Italy ranks second in Europe in terms of hourly productivity in the manufacturing sector.
* Sustainable and Low-Emission Economy: Italy’s greenhouse gas emissions are among the lowest in the G20, at only 0.12 kg of CO₂ per dollar of GDP. This makes Italy’s industrial sector one of the most environmentally efficient globally.
* Structurally Improving Labor Market: Between 2012 and 2023, the labor force participation rate – the proportion of the working-age population (15–65 years) engaged in the labor market – increased by 3.7 percentage points. The employment rate grew even more significantly, by 5.4 percentage points. These improvements are the result of targeted reforms that promoted stable employment, with a marked increase in permanent contracts. These changes have enhanced both productivity and labor market competitiveness.
* Stronger and Less Indebted Enterprises: Between 2007 and 2022 – following the 2008 financial crisis and the COVID-19 pandemic – Italian companies strengthened their capital position (with equity growing from 34.5% to 47.3%) and reduced their reliance on bank debt (from 19.5% to 13.2%). As a result, Italian firms now have a higher share of equity and a lower share of debt, making them more resilient to potential interest rate increases.
* Public Finances More Stable Than Perceived: Between 2019 and 2023, despite the challenges posed by COVID-19 and the war in Ukraine, Italy’s public debt increased by only 1.2 percentage points. In comparison, countries like France saw much larger increases (e.g. +11.8%). Italy has therefore maintained tighter control over its public finances. Moreover, over 70% of Italian public debt is held by domestic investors, which reduces the country’s exposure to future international financial crises.