Flag of Italy>

Economy and Banking Sector of Italy

National Currency

Euro (EUR)

Italy joined the Euro Area on 1 January 1999.

GDP

Nominal GDP (2019)
1,787.7 bln EUR  (+0.02%)
Nominal GDP per Capita (2019)
29,610 EUR  (+0.02%)
Real GDP Growth (2019)
0.3 %  (2018: 0.9 %)

According to Eurostat, nominal GDP of Italy in 2019 was 1,787.7 bln EUR.

Italy underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.9% over the past 10 years (2009 - 2019). In 2019 real GDP growth was 0.3% which was below the Euro Area average (1.2%) and below the European Union average (1.5%). Real GDP growth in 2020 - 2024 are IMF's estimates.

Real GDP Growth in Italy.

Chart 1. Real GDP Growth in Italy. Source: Eurostat, International Monetary Fund.

In 2019, nominal GDP per capita in Italy was 29,610 EUR.

Italy has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -7.2% over the past 10 years (2008 - 2018). GDP per capita at PPP in 2019 - 2024 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Italy; European Union = 100.

Chart 2. GDP Per Capita at Purchasing Power Parity in Italy; European Union = 100.

Inflation Rate

CPI, MoM (May 2020)
-0.2 %  (Apr 2020: 0.5 %)
CPI, YoY (May 2020)
-0.2 %  (Apr 2020: 0.1 %)
CPI, Year Average (2019)
0.6 %  (2018: 1.2 %)

According to Eurostat, inflation rate in Italy in 2019 expressed as annual percentages of average consumer prices was 0.6% which was below the Euro Area average (1.2%) and below the European Union average (1.5%). Inflation rates in 2020 - 2024 are IMF's estimates.

Inflation Rate in Italy.

Chart 3. Inflation Rate in Italy. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2019)
10.0 %  (2018: 10.6 %)

According to Eurostat, unemployment rate in Italy in 2019 was 10.0% which was above the Euro Area average (7.6%) and above the European Union average (6.3%). Unemployment rates in 2020 - 2024 are IMF's estimates.

Unemployment Rate in Italy.

Chart 4. Unemployment Rate in Italy. Source: Eurostat, International Monetary Fund.

Government Bond Yield

Government Bond Yield (Apr 2020)
1.80 %  (Mar 2020: 1.55 %)

According to Eurostat, government bond yield in Italy in April 2020 was 1.80%, compared to 1.55% in March 2020.

Government bond yield of Italy.

Chart 5. Government bond yield of Italy. Source: Eurostat.

Credit Ratings (as of Jun 2020)

Fitch
BBB- (good credit quality), outlook stable
Moody's
Baa3 (lower medium grade), outlook stable
Scope
BBB+ (lower medium grade), outlook negative

Italy has sovereign credit ratings assigned by American credit rating agencies Fitch and Moody's: the rating set by Fitch is BBB- (good credit quality), outlook stable; the rating set by Moody's is Baa3 (lower medium grade), outlook stable. Scope Ratings, European rating agency, rated Italy as BBB+ (lower medium grade), outlook negative.