Italy - A new era of economic sustainability

Investment in Italy surged 15.8% in 2021 and is expected to expand at an annual average 5.7% in 2022-23, according to a December 2021 report by global professional services company PWC, as the country reasserts its position as one of the world’s leading business destinations.

The Southern European economy, one of the world's ten largest, saw investment more than three times the European Union average in 2021, and will continue to outstrip the bloc of which it is a leading member in the coming two years. As PWC noted, the country was recently upgraded from stable” to “positive outlook by ratings agency S&P, acknowledging the government's commitment to pro-growth reforms would boost the economy.

Official estimates show that the economy grew by more than 6% in 2021 and will expand by a further 4.7% in 2022. Yet the administration led by highly-respected former European Central Bank president Mario Draghi will not rest on its laurels. The government is committed to further reform, and supporting Italy's extremely dynamic private sector, which is taking the lead in Europe's recovery - and its transition to a greener, more digitalised economic model.

Italy is currently experiencing a period of strong recovery, which is better than what we had imagined even only a few months ago, said Draghi in September 2021. If we look beyond the current economic situation, our goal must be to significantly improve Italy's long-term growth rate. To strengthen the economy, we must open up markets, not defend our incomes. We intend to foster innovation and support the environmental and digital transition. Knowing the merits of Italian businesses, I have no doubt that Italy will be proud of this page in its history.

Draghi's government is earning widespread praise from the Italian business community for its progress in driving improvements to the investment environment and its support for the post-covid recovery. Following the deep recession of 2020, and a period of political squabbling prior to it, the leadership and policy vision shown by the Draghi administration is proving most welcome.