Italy's current account surplus grows in 2025, external assets increase
Italy's current account recorded a surplus of €27.4 billion in 2025, equivalent to 1.2 percent of GDP, an increase from the previous year. The financial account showed net acquisitions of external assets amounting to €26.9 billion for the year.
Primary income drives current account strength
In 2025, Italy's current account recorded a surplus of €27.4 billion, equivalent to 1.2 percent of GDP, an increase from the €23.8 billion surplus in 2024. This improvement was exclusively driven by a significant turnaround in the primary income balance, which shifted from a €7.6 billion deficit in 2024 to a €3.4 billion surplus in 2025. This positive development more than offset slight deteriorations in other current account components.
The trade surplus modestly decreased to €51.7 billion from €55.0 billion.
The secondary income deficit widened to €21.6 billion from €18.7 billion, and the services deficit expanded to €6.0 billion from €4.9 billion.
These figures underscore the critical role of primary income in bolstering Italy's external position for the year.
External assets grow despite portfolio outflows
In 2025, the financial account recorded net acquisitions of external assets amounting to €26.9 billion, a decrease from €51.8 billion in 2024. This was influenced by negative balances in portfolio investment (-€22.6 billion) and derivatives (-€3.0 billion), which were largely offset by significant positive contributions from 'other investment' (€39.7 billion), direct investment (€11.0 billion), and official reserves (€1.7 billion).
For December 2025, foreign assets held by Italian residents increased by €14.1 billion, mainly due to a rise in portfolio investment abroad.
Foreign liabilities also increased by €0.9 billion, driven by foreign investment in Italian portfolio securities and 'other investment,' despite a decline in foreign direct investment in Italy.
Resilience in a shifting global landscape
The sustained current account surplus underscores Italy's improving external position, largely driven by a significant turnaround in primary income.
While the overall financial account shows asset growth, the shift in composition, particularly the decline in portfolio investment, warrants closer observation.
These figures reflect Italy's ongoing economic rebalancing efforts amidst evolving international capital flows and trade dynamics.