An Italy “demonstrating resilience against the shocks of recent years, yet with a long-term growth pace that needs strengthening.” This is the picture painted by the OECD in two reports prepared by the Paris-based organization and presented at CNEL (National Council for Economics and Labour) during the conference titled “From Resilience to Long-Term Growth: Key Priorities to Address Italy’s Future Challenges.”
The event was opened by CNEL President Renato Brunetta, followed by an address from OECD Chief Economist Stefano Scarpetta. On one hand, positive employment data, the impact of the NRRP (National Recovery and Resilience Plan), and sounder public finances have underpinned the economy following the pandemic. On the other hand, an aging population, high public debt, and elevated energy costs risk weighing on potential growth. The recommendations focus on productivity, business competitiveness, training, labor market participation, and attracting qualified young talent—issues that carry particular weight in light of demographic and technological transformations.
In this context, the OECD highlights the overarching priority of balancing fiscal discipline with support for growth and investment, according to a press statement.
More orderly public finances are securing greater market credibility for Italy. This emerges from the two OECD reports, which emphasize how the budget deficit fell from 7.2% of GDP in 2023 to 3.1% in 2025, the primary balance returned to a surplus in 2024, and rating agencies upgraded their outlook on sovereign debt, yielding lower financing costs for local authorities and businesses alike.
The financial system also appears more robust: banks are better capitalized and more profitable, non-performing loans are near record lows, and corporate debt has decreased amid strong liquidity. Private wealth remains substantial: at the end of 2024, household net wealth reached €11.732 trillion, equivalent to 532% of GDP.
Translated with the assistance of Gemini.
