Italy faces economic stagnation and demographic decline

Italy is facing significant economic and demographic challenges characterized by stagnant wages and a declining birth rate. Data shows that between 1990 and 2025, average real salaries in Italy decreased by 2%, contrasting sharply with growth in countries like France, Germany, and the United States.

Recent figures from Istat indicate that real contractual remuneration remains 8.6% lower than 2019 levels. Despite a slight increase in disposable income in early 2026, rising consumer prices have led to a 0.9% decrease in household purchasing power in just three months. The Italian government has resisted implementing a national minimum wage, opting instead to strengthen collective bargaining.

These economic pressures contribute to a broader demographic crisis. Between 2011 and 2024, approximately 630,000 citizens under the age of 35 emigrated from Italy. Experts warn that the country's competitiveness is declining, ranking 45th out of 70 nations, while the aging population poses long-term risks to the welfare and pension systems.