Italy’s economic recovery has been weak

Italy’s GDP per capita is at the same level of 20 years ago

Poverty rates rose during the crisis and remain high, especially for the young¹

Regional disparities in GDP per capita, poverty and employment are large and increasing

The recovery has weakened as export and private consumption growth have abated

Relative unit labour costs and price competitiveness are flat

Unemployment has fallen but remains high, especially for the young

Aggregate productivity¹ has not increased for many years

Private investment is rising whereas public investment has fallen to record low levels

Fiscal policy will turn expansionary and the debt ratio will barely decline

Under current policies the debt to GDP ratio will remain high and vulnerable to risks

Banks’ non-performing loans to non-financial corporations have declined

Banks’ health has improved but risks remain

Italian banks have acted as countercyclical investors in Italian sovereign bonds

The ownership of government debt securities has changed significantly

Reforms in the past 5 years have focused on labour issues

Indicators of perception of corruption

Reforms to raise participation and improve the business climate would lift Italy’s growth prospects

The recommended reform package would help to offset the growth effects of ageing and the decline in the working age population

The recommended reform package would improve debt sustainability

Green growth indicators for Italy

The temporary cut in social security contributions temporarily boosted job creation through permanent contracts

Italy’s public employment services are under-resourced

Small firms employ most workers but their productivity is low

Venture capital is little used to finance Italy’s SMEs and entrepreneurs

The perceived quality of infrastructure is low

Italy performs well in international trade logistics

Sub-national governments have contributed to the fall in public investment

The stock of sub-national government debts has declined

Italy’s tax authority spends less on IT systems than other countries’ agencies