WP 3-26 Italy, Growth and Public Finance

This paper argues that Italy has undergone a significant double paradigm shift in recent years. Contrary to the widespread perception of a stagnant economy and fragile public finances, the country has demonstrated a remarkable degree of economic resilience, achieving strong results in terms of growth,  employment and exports while strengthening its fiscal position. The analysis highlights the role played by the competitiveness and diversification of Italy's productive system, the contribution of medium-sized enterprises, and the strength of manufacturing, tourism and agriculture. Based on a broad set of economic indicators and international comparisons, the paper shows that Italy's recent performance reflects a combination of structural strengths and greater fiscal discipline. Taken together, these developments point to the emergence of a more resilient and balanced model of economic development.