This 2013 Article IV Consultation highlights Italy's assesses measures undertaken to revive economic growth. Italy is vulnerable to a renewal of euro area tension and risks from domestic policy slippages, stalling of structural reforms, and banking distress that could undermine confidence. The...

This Selected Issues paper presents Italy's economic growth through innovation and reforms. It highlights that Italy's future competitiveness depends on the institutional and macroeconomic conditions that allow productive firms to innovate, expand, and attract inward foreign direct investment...

This Selected Issues paper focuses on economic challenges and options for overcoming the demographic drag in Italy. Italy has large catch-up potential to help overcome the demographic drag on output, but fundamental changes are needed to shift from the current suboptimal equilibrium. On numerous...

The 2023 Article IV Consultation highlights that the Italian economy has weathered well the effects of Russia's war in Ukraine, growing by 3.7 percent in 2022. Private consumption rose robustly on recovery in employment, buoyant tourism, and extensive fiscal support of real purchasing power....

GDP has fully recovered from the pandemic crisis, but government debt has risen to very high levels. The war in Ukraine triggered a surge in energy prices and the prospect of monetary policy tightening caused government bond yields to rise sharply. Implementation of the National Recovery and...

The Selected Issues paper investigates options for improving the efficiency of the Italian judicial system and closing the regional performance gap. Better courts would bring about macroeconomic benefits, including increased employment opportunities, and higher productivity, investment, and...

Activity expanded by nearly 1 percent in 2023, with GDP surpassing its pre-pandemic level by 4½ percent. Headline inflation fell on the drop in energy prices, with core inflation also moderating. Employment rose alongside real activity. Financial conditions have eased somewhat but remain tight....

KEY ISSUES Unleashing Italy's Potential The economy is struggling to emerge from a prolonged balance-sheet recession. Tight credit conditions, weak corporate balance sheets, and deeply-rooted structural rigidities continue to weigh on domestic demand. The high level of public debt and membership...