Banca d'Italia reports widening current account surplus and strong investment position

Italy's current account surplus reached €27.0 billion in the twelve months ending November 2025, up from €23.8 billion in the previous year, representing 1.2 percent of GDP.

This improvement was primarily driven by a significant turnaround in the primary income balance, which shifted from a €9.0 billion deficit to a €2.7 billion surplus.

However, this positive development was partially offset by deteriorations in other key components.

The trade surplus for goods declined to €51.0 billion from €55.5 billion, while the secondary income deficit widened to €21.5 billion from €18.7 billion.

Furthermore, the services deficit expanded to €5.1 billion from €4.1 billion, indicating ongoing challenges in these areas despite the overall current account strength.

At the end of September 2025, Italy's net international investment position (NIIP) stood at a positive €298 billion, equivalent to 13.3 percent of GDP.

This represents a substantial €59.6 billion increase compared to the end of June.

The rise in the NIIP was largely due to positive valuation adjustments, predominantly stemming from the revaluation of gold in official reserves.

To a lesser extent, the current and capital account surplus also contributed to this strengthening.

This positive trend indicates a more robust external financial position for Italy, reducing its net external liabilities.