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Italy’s GDP Growth: Record Performance Among Major European Countries

Italy stands out positively among major European countries, recording a Gross Domestic Product (GDP) growth superior to Spain, France, and Germany. Despite international challenges and crises following the Covid pandemic, the analysis by the Cgia Studies Office in Mestre reveals Italy has overcome negative effects, showing a 3% increase in GDP compared to 2019.

Italy Leading the European Chart

The analysis compares performances between 2019 (pre-Covid year) and 2023, highlighting Italy’s +3% GDP growth, surpassing Spain (+2.3%), France (+1.8%), and Germany (+0.7%). Though demographically smaller countries experienced higher growth, Italy ranks at the top among major European nations.

Italy’s GDP Growth: Recovery Driven by Various Sectors

Italy’s economic recovery has been supported by several key sectors, including tourism, manufacturing, family consumption, investments, and exports. In October, the employment rate reached 61.8%, with almost 23.7 million employees, marking a historic record.

Italy’s GDP Growth: Economic Measures Mitigate Negative Impacts

Despite challenges like rising energy prices and interest rates, economic measures implemented by the Italian government have helped mitigate negative impacts. Grants, relief packages, compensations, and other measures provided crucial support, with over 270 billion euros allocated between 2020 and 2022.

Persistent Challenges

The Cgia Studies Office emphasizes that, despite growth, Italy faces persistent challenges such as poverty, female unemployment, undeclared work, taxes, bureaucracy, evasion, inefficiency in public administration, and a high public debt. These factors have been hindering the country’s growth for at least two decades.

Regional Scenario

At the regional level, Lombardy stands out as the region that has best overcome the crises of the last four years, with a 5.3% growth. Other territories like Emilia Romagna, Puglia, Friuli Venezia Giulia, Trentino Alto Adige, and Veneto show significant increases in GDP.

Impact on Employment and Key Sectors

The positive trend in the Italian economy is reflected in employment, with the rate reaching 61.8% and almost 23.7 million employees, a never-before-reached record. The analysis highlights that tourism, manufacturing, family consumption, investments, and exports have been the main drivers of this recovery.

Italy’s GDP Growth: State Contribution and Public Debt

The study highlights the significant role of the state in supporting the economy through grants, relief measures, and tax credits, totaling over 270 billion euros between 2020 and 2022. While this has led to an increase in public debt, it has prevented the collapse of the national economy.

Structural Challenges and Future Reflections

The Cgia Studies Office calls for careful reflection on persistent structural challenges such as poverty, female unemployment, undeclared work, and bureaucracy. Despite recent successes, sustainable growth will require a holistic approach to address these issues.

Conclusion

In conclusion, Italy emerges as a leader in economic growth among major European countries, with remarkable performance in recent years. However, addressing persistent structural challenges remains crucial to ensuring sustainable and inclusive growth in the long term.

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