Italy's fiscal pressure rises to 37.6% of GDP in Q1 2026

Italy's fiscal pressure, measured as the ratio of taxes and social contributions to GDP, reached 37.6% in the first quarter of 2026, up 0.3 percentage points from the same period a year earlier. Public‑administration revenues rose to 42.3% of GDP while the primary fiscal deficit narrowed to 4.4% of GDP and the overall current‑account balance remained negative at 2.9% of GDP. The overall fiscal deficit fell to 7.8% of GDP, an improvement from 8.4% a year earlier.

Household disposable income increased by 1.6% from the previous quarter, with consumption up 1.4% and purchasing power rising 0.8%. The household saving rate reached 8.0%, a 0.2‑point rise. The profit share of non‑financial corporations fell to 42.8%, down 0.5 points.

Minister of Enterprises and Made‑in‑Italy Adolfo Urso said the figures “confirm the solidity of the path we have taken, we are on the right road.” The consumer association UNC warned that the data were “surpassed by the Iran effect,” fearing that future quarters could see a reversal of the positive trend.