Italy’s Slow Recovery: GDP Grows, but Taxes Keep Rising

In 2024, Italy’s GDP increased by 0.7% while the deficit fell. However, rising taxation threatens businesses and consumer spending.

Team Italia News

3 March 2025

The Italian economy grew by 0.7% in 2024, below the 1% forecast by the government. While public finances improved, with the deficit falling to 3.4% and public debt reaching 135.3% of GDP, rising tax pressure at 42.6%raises concerns.

The industrial sector continues to struggle, while services and construction drive growth. The ISTAT report confirms an economy still in fragile conditions, with SMEs under pressure and a slow recovery.

Slow Growth Despite Some Improvements

GDP +0.7%, lower than expected.
Consumption +0.6%, investments +0.5%, but weak domestic demand.
Exports +0.4%, imports -0.7%, giving a slight boost.

Falling Deficit, but at What Cost?

Deficit at 3.4% of GDP, lower than the 3.8% estimate.
Public debt reaches 135.3% of GDP.
Tax pressure rises to 42.6%, straining businesses and households.

Unimpresa’s Warning: The Government Must Act

Unimpresa warns that without tax cuts and investment incentives, the risk of stagnation in 2025 is real. The government must take action to ease the tax burden and support economic growth.

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