Italy: economy

Which sectors are driving Italy's economy?

Italy's GDP grew 0.2% in the second quarter of 2026 from the first and 1.0% from a year earlier, according to Istat's quarterly national accounts of 1 September 2026. Services value added rose 0.4%, while industry fell 0.5% and agriculture 0.2%.

On the demand side, consumption and investment both grew 0.3%. Net exports took 0.3 points off growth, as imports rose faster than exports. Istat puts the growth already secured for 2026, if GDP stayed flat for the rest of the year, at 0.8%.

Official sources: Istat: quarterly national accounts, Q2 2026 (PDF)

Is Italian industrial production growing?

Italy's industrial production fell 1.3% in August 2026 from July, seasonally adjusted, according to Istat's industrial production release of 9 October 2026. Over June to August output was 1.1% lower than in the previous three months. Adjusted for calendar effects it was unchanged from August 2025.

The index excludes construction and uses 2021 = 100. The unadjusted index for August was 60.6, against 92.8 seasonally adjusted, so use the adjusted series for month-to-month comparisons. Data are provisional and revised the following month.

Official sources: Istat: industrial production, August 2026 (PDF)

Does Italy have a trade surplus?

Italy had a trade surplus of €8.24 billion in July 2026, according to Istat's foreign trade release of 15 September 2026. The surplus was €1.25 billion with EU countries and €6.99 billion with non-EU countries. Excluding energy it was €13.76 billion.

Exports rose 4.7% and imports 4.6% from July 2025. The gap between the total and the non-energy balance shows the cost of Italy's energy imports. Import prices were 5.0% higher than a year earlier.

Official sources: Istat: foreign trade and import prices, July 2026 (PDF)

Are Italian retail sales rising?

Italian retail sales rose 0.3% in value and 0.1% in volume in August 2026 from July, seasonally adjusted, according to Istat's retail trade release of 2 October 2026. Compared with August 2025, sales were 0.5% higher in value but 1.0% lower in volume.

Value is what shoppers spent; volume removes price changes, so a gap between the two means more was paid for fewer goods. Online sales rose 5.4% over the year, and large-scale retailers grew 1.1% while small shops fell 0.7%.

Official sources: Istat: retail trade, August 2026 (PDF)

How confident are Italian consumers and businesses?

Italy's consumer confidence index fell from 94.5 to 91.2 in September 2026, according to Istat's consumer and business confidence release of 30 September 2026. The composite business confidence indicator (IESI) fell from 97.0 to 95.9.

Manufacturing confidence rose from 90.2 to 91.9, while construction fell from 102.8 to 97.5, market services from 99.4 to 96.9 and retail from 106.5 to 104.5. The indices are based on monthly surveys of households and firms.

Official sources: Istat: consumer and business confidence, September 2026 (PDF)

What is Italy's economic growth rate?

The latest figure from the World Bank, for 2025, is 0.5%. The peak was 8.9% in 2021 and the low -8.9% in 2020. Across Europe & Central Asia the middle value was 2.1%, and Italy placed 46th highest of 49. World rank, highest first: 165th of 180.

How rich is Italy per person?

The World Bank puts GDP per person in Italy at $43,309 in 2025. No year since 2005 has been higher. Across Europe & Central Asia the middle value was $28,420, and Italy placed 16th highest of 49. Of 180 countries with 2025 data, 24th highest.

What is Italy's GDP per person adjusted for prices?

According to the World Bank, GDP per person at purchasing power parity in Italy was $62,803 in international dollars in 2025. No year since 2005 has been higher. It is 17th highest of 49 in Europe & Central Asia, where the median is $50,946 in international dollars. World rank, highest first: 28th of 179.

How big are Italy's exports?

32.2% of GDP: that is exports of goods and services in Italy for 2025, according to the World Bank. Since 2005 it has ranged from 22.3% of GDP (2009) to 35.1% of GDP (2022). Across Europe & Central Asia the middle value was 47.7% of GDP, and Italy placed 38th highest of 46. Of 133 countries with 2025 data, 73rd highest.

Does Italy earn more abroad than it spends?

The latest figure from the IMF, for 2025, is 1.1% of GDP. The peak was 3.9% of GDP in 2020 and the low -3.2% of GDP in 2010. Across Europe & Central Asia the middle value was -0.3% of GDP, and Italy placed 18th highest of 47. World rank, highest first: 46th of 132.

What is FDI in Italy?

In 2025, net inflows of foreign direct investment in Italy was 0.0% of GDP, according to the IMF. Its high point since 2005 was 2007, at 3.0% of GDP; its low point was 2020, at -0.9% of GDP. It is 40th highest of 49 in Europe & Central Asia, where the median is 1.9% of GDP. World rank, highest first: 160th of 179.

What interest rate do banks charge in Italy?

4.9%: that is the average bank lending rate in Italy for 2023, according to the IMF. The peak was 6.8% in 2008 and the low 2.0% in 2021. It is 18th highest of 22 in Europe & Central Asia, where the median is 9.6%. Of 90 countries with 2023 data, 83rd highest.