Italy's current account surplus rises to €32.9 billion
The Banca d'Italia reported that Italy's current account surplus increased to €32.9 billion in the twelve months ending April 2026. This improvement was driven by a return to surplus in primary income and a wider goods surplus.
Current account strengthens significantly
Italy's current account recorded a surplus of €32.9 billion in the twelve months leading up to April 2026, equivalent to 1.4 percent of GDP.
This marks a substantial increase from the €18.0 billion surplus observed in the corresponding period a year earlier.
The primary driver of this improvement was the primary income balance, which returned to a surplus of €3.4 billion, a significant turnaround from a deficit of €4.4 billion previously.
Additionally, the goods surplus expanded notably to €54.8 billion from €47.1 billion.
The secondary income deficit also narrowed, contributing positively to the overall balance, moving from -€19.1 billion to -€18.6 billion.
The only component that deteriorated was the services balance, which recorded a larger deficit of -€6.7 billion, compared to -€5.7 billion in the prior period, indicating a slight weakening in this sector.
Foreign asset acquisitions continue
The financial account for the twelve months ending April 2026 showed net acquisitions of foreign assets totaling €45.5 billion, a slight increase from €44.1 billion in the preceding year.
This positive balance was primarily supported by strong direct investment, which registered a surplus of €37.4 billion.
Other investment also contributed significantly with a positive balance of €34.7 billion, alongside an increase in official reserve assets by €2.5 billion.
These positive flows were partially offset by negative balances in portfolio investment, which recorded a deficit of -€26.8 billion, and financial derivatives, with a deficit of -€2.3 billion.
In April 2026 alone, foreign assets held by Italian residents increased by €13.3 billion, mainly due to portfolio investment abroad rising by €13.7 billion.
Italy's external liabilities increased by €2.1 billion in April, driven by foreign purchases of Italian government securities.
External position shows resilience
The sustained current account surplus underscores Italy's improving external competitiveness and reduced reliance on foreign capital.
However, the deterioration in the services balance warrants closer scrutiny, potentially indicating underlying structural challenges in a key sector.
This robust external performance provides a crucial buffer against global economic uncertainties, yet granular trends highlight areas for ongoing policy attention.