Italian Economy Expands in 2024

In a promising sign for the Italian economy, the National Institute of Statistics (Istat) reported a 0.7% increase in GDP for the year 2024 compared to the previous year. This growth, measured in real terms, underscores the resilience and potential of Italy's economic landscape.

Key Drivers of Growth

Several factors contributed to this upward trend, with national demand excluding changes in inventories leading the charge by contributing 0.5 percentage points to the GDP growth. Following closely were final consumption expenditure and the external balance of goods and services, each adding 0.4 percentage points to the economy's expansion.

Investment and Trade Dynamics

Investments in the form of gross fixed capital formation saw a 0.5% increase, while final consumption expenditure rose by 0.6%. On the trade front, exports experienced a modest 0.4% growth, contrasting with a 0.7% decline in imports, reflecting a complex interplay of global trade dynamics affecting Italy's economy.