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Italy's Economy

Italy at a Glance

An overview of Italy, Europe's third largest eurozone economy with about 59 million people, its manufacturing strengths and its decades of slow growth.

Italy is the eurozone’s third largest economy, with about 59 million people.

Strengths

  • Manufacturing: machinery, cars, food and fashion.
  • Europe’s second largest manufacturer after Germany.
  • World-famous brands.

Weakness

Since the 1990s, Italy’s economy has barely grown, with real income per person roughly flat for decades.

Challenges

  • High public debt.
  • A big north-south gap.
  • An ageing population.
  • Slow bureaucracy and courts.
The flat decades

An Italian worker in 2020 earned about the same real income as one in 2000.

Thinking Italy is a small economy

It's a major manufacturer.

Key takeaways
  • Italy has about 59 million people.
  • It's Europe's second largest manufacturer.
  • Growth has stagnated since the 1990s.
  • Debt, ageing and bureaucracy weigh on it.
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