The growth of the Italian economy, a question of enterprise culture
A Bank of Italy study shows that companies are expanding, but at an uneven rate
Contrary to the predictions of the pessimists, the Italian economy has grown, according to data and analysis from the Bank of Italy in a recently published research paper. This is due to productivity and ‘industrial intelligence’, but these do not hide the problems that need to be addressed, which are rooted in the need to spread a business culture that is still often for the few.
‘Le recenti dinamiche della produttività e le trasformazioni del sistema produttivo’ (The recent dynamics of productivity and the transformations of the production system) is a research paper published in the Occasional Papers series ‘Questioni di Economia e Finanza’, conducted by a large group of economists at the Central Institute. The paper takes its cue from an observation: ‘Between 2019 and 2024, the GDP growth rate was 5.6 per cent, despite the shocks related to the pandemic, energy crisis and geopolitical tensions. This was slightly higher than the previous five-year period (5.1 per cent) and higher than that of the euro area (4.8 per cent). The expansion of activity levels was most pronounced in the private sector, with growth in value added reaching almost 10 per cent. The increase has benefited significantly from generous fiscal policies, but has lost momentum in the last two years.’ This expansion primarily impacted construction and services, while manufacturing slowed, and employment grew, though productivity weakened and declined over the past two years. These are the core facts that the Bank of Italy’s team of economists sought to examine in depth.
One of the survey’s conclusions was that the average size of companies had increased, as had their profitability and propensity to invest. This demonstrates that a large proportion of Italian entrepreneurs tried to respond to difficulties by reallocating resources, investing, and trying to increase production efficiency. However, the problem that has emerged is no small one: the gap between the best companies and the rest of the productive sector has increased, meaning that while the Italian economy has grown, it has done so unevenly, leaving many companies behind.
What can we do, then? The research explains: ‘In order to close the productivity gap with the main European countries and in light of recent signs of weakening, it will be crucial to promote a wider adoption of advanced technologies and strengthen the productive fabric more widely.’ In short, this means speeding up the spread of the improved corporate culture that has driven only a fraction of companies to innovate. This is not a small challenge, but it is one that must be addressed.
Le recenti dinamiche della produttività e le trasformazioni del sistema produttivo
Antonio Accetturo, Audinga Baltrunaite, Emanuele Ciani, Federico Cingano, Federica Daniele, Roberta De Luca, Irene Di Marzio, Rosalia Greco, Andrea Linarello, Francesco Manaresi and Sauro Mocetti
Bank of Italy, Questioni di Economia e Finanza (Occasional Papers), no. 953 – July 2025
A Bank of Italy study shows that companies are expanding, but at an uneven rate
Contrary to the predictions of the pessimists, the Italian economy has grown, according to data and analysis from the Bank of Italy in a recently published research paper. This is due to productivity and ‘industrial intelligence’, but these do not hide the problems that need to be addressed, which are rooted in the need to spread a business culture that is still often for the few.
‘Le recenti dinamiche della produttività e le trasformazioni del sistema produttivo’ (The recent dynamics of productivity and the transformations of the production system) is a research paper published in the Occasional Papers series ‘Questioni di Economia e Finanza’, conducted by a large group of economists at the Central Institute. The paper takes its cue from an observation: ‘Between 2019 and 2024, the GDP growth rate was 5.6 per cent, despite the shocks related to the pandemic, energy crisis and geopolitical tensions. This was slightly higher than the previous five-year period (5.1 per cent) and higher than that of the euro area (4.8 per cent). The expansion of activity levels was most pronounced in the private sector, with growth in value added reaching almost 10 per cent. The increase has benefited significantly from generous fiscal policies, but has lost momentum in the last two years.’ This expansion primarily impacted construction and services, while manufacturing slowed, and employment grew, though productivity weakened and declined over the past two years. These are the core facts that the Bank of Italy’s team of economists sought to examine in depth.
One of the survey’s conclusions was that the average size of companies had increased, as had their profitability and propensity to invest. This demonstrates that a large proportion of Italian entrepreneurs tried to respond to difficulties by reallocating resources, investing, and trying to increase production efficiency. However, the problem that has emerged is no small one: the gap between the best companies and the rest of the productive sector has increased, meaning that while the Italian economy has grown, it has done so unevenly, leaving many companies behind.
What can we do, then? The research explains: ‘In order to close the productivity gap with the main European countries and in light of recent signs of weakening, it will be crucial to promote a wider adoption of advanced technologies and strengthen the productive fabric more widely.’ In short, this means speeding up the spread of the improved corporate culture that has driven only a fraction of companies to innovate. This is not a small challenge, but it is one that must be addressed.
Le recenti dinamiche della produttività e le trasformazioni del sistema produttivo
Antonio Accetturo, Audinga Baltrunaite, Emanuele Ciani, Federico Cingano, Federica Daniele, Roberta De Luca, Irene Di Marzio, Rosalia Greco, Andrea Linarello, Francesco Manaresi and Sauro Mocetti
Bank of Italy, Questioni di Economia e Finanza (Occasional Papers), no. 953 – July 2025