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Our country reaches France, reduces the gap with Germany and exceeds the Eurozone average: the post-Covid recovery bears fruit
In an international context marked by geopolitical instability, persistent inflation and macroeconomic uncertainties, Italy emerges as a surprising and positive case within the Eurozone. The most recent data provided by the European Commission, contained in the spring economic forecasts, offer encouraging food for thought: Italian GDP per capita, calculated at purchasing power parity, has reached that of France. A goal that is far from obvious, which marks a turning point for the Italian economy and represents a sign of vitality after decades of stagnation.
GDP per capita: a more real measure of well-being
The GDP per capita figure adjusted for purchasing power represents a more realistic indicator of the actual wealth of citizens, since it takes into account the cost of living and demographic dynamics, elements that often distort comparisons between states. From this perspective, Italy’s progress takes on an even more significant value. In 2020, the gap between Italian and French per capita GDP was 10.1%. Today that gap has closed completely, leading Italy to reach one of the main European benchmarks. But that’s not all: in the same period of time, the gap with Germany has almost halved, going from 24.3% to 13.9%. Even more symbolic is the overtaking of the Eurozone average, exceeded by 1.1%. A figure that portrays a country capable of reacting with determination to the pandemic crisis, strengthening its position in Europe.
A recovery driven by employment
Among the factors that have contributed to this growth, the labor market stands out. Italy has seen a significant increase in employment levels in the last two years, reaching new records. A result that has not only had a direct impact on household disposable income, but has also stimulated domestic consumption, a crucial element in an economy with a strong manufacturing and service component like the Italian one. It is true, as analysts point out, that productivity per employee remains an unresolved issue: the product per worker in Italy remains lower than in other European countries. But the direction is set, and the signals are comforting. The dynamism of the labor market represents a fundamental asset for facing future challenges, starting with technological innovation and the ecological transition. The resulting social stability also contributes to strengthening the cohesion of the country system.
Italy better than Spain and catching up with Germany
If we look at the comparison with other large European countries, the numbers speak for themselves. Today, each Italian produces, at equal purchasing power, 6.2% more than each Spaniard. An advantage that in 2020 was even more marked (+13.1%) but that in previous years was almost zero (+5.9% in 2015). Spain has run a lot, but Italy has been able to consolidate its position. And the recovery compared to Germany, even if still incomplete, is evident: closing a gap of over ten points in five years is no small achievement, especially considering the well-known structural difficulties of our country.
Challenges still open, but the direction is right
There is certainly no shortage of shadows in the overall picture. The level of public debt remains very high and represents a structural brake on economic policy. Furthermore, Italy’s overall GDP has not yet recovered the pre-crisis levels of 2008, and general well-being remains far from the peaks reached at the turn of the millennium. However, it is right to give credit where credit is due. Italy has shown that it can react forcefully to one of the hardest crises in its recent history, recovering competitiveness and relative well-being. Overtaking France in GDP per capita is not just a symbolic victory: it is evidence of an economic fabric that, despite a thousand difficulties, is still capable of surprising and growing. Now, consolidating these results with effective structural reforms can really make a difference for the future.
Alessandro Fiorentino