News / Insights

The Confindustria Research Center analyzes the strengths that have characterized our economy, highlighting tangible progress made in recent years and underscoring the robustness of the Italian production system in the eyes of international analysts.

Between 2018 and 2023, Italy recorded higher economic growth than Germany (+1.0% annually versus +0.3%), thanks primarily to a significant increase in investment (+17.8% compared to 2019), which was significantly higher than that of France, Germany, and Spain. This performance was driven primarily by the manufacturing sector, the second-largest in Europe and the most diversified, with hourly productivity exceeding that of France and Spain. Exports have increased by over 45% since 2015, contributing to a solid net international financial position (+12.2% of GDP in 2024). Looking at the corporate sector, the financial structure has strengthened with an increase in capitalization and a reduction in reliance on bank credit. From 2007 to 2022, the share of equity grew by 13 percentage points, while the share of bank loans fell from 19.5% to 13.2%. The labor market has also shown positive signs, with rising labor force participation and employment rates. The most recent labor reforms have contributed to greater flexibility and dynamism, boosting business productivity. From an environmental and sustainability perspective as well, Italy stands out for having one of the lowest emissions intensities among G20 countries, with particularly positive results in the manufacturing sector—the second-largest in the country but only seventeenth in Europe in terms of emissions intensity. Significant progress has also been made in terms of structural reforms, particularly in the judicial system, with a 44% reduction in the civil case backlog and an improvement in overall efficiency. On the social security front, Italy has launched a series of reforms that will help contain pension spending in the long term. At the same time, political and fiscal stability has improved significantly. The World Bank’s political stability indicator shows a marked improvement between 2018 and 2023, and public debt has grown less than in other advanced economies. Furthermore, the share of debt held by foreign investors is significantly lower than that of France and Germany, a sign of greater domestic resilience. Despite these results, a misalignment persists between Italy’s economic fundamentals and sovereign credit ratings. The Confindustria document therefore calls for an updated assessment of country risk, in light of the growth, productive strength, and fiscal discipline demonstrated in recent years.