Banca d'Italia and Istat publish report on Italy's institutional wealth
Banca d'Italia and Istat have released their joint annual publication on the financial and non-financial wealth of Italy's institutional sectors. The report provides an overview of asset changes over time and compares Italy with other advanced economies.
Italian households' wealth grows, inflation bites
At the end of 2024, Italian households' net wealth stood at €11,732 billion, a 2.8 percent nominal increase from 2023. However, real net wealth remains over 5 percent below 2021 levels, primarily due to high inflation in 2022. Non-financial assets grew 1.9 percent nominally, driven by rising dwelling values over the past three years.
Financial assets increased 3.6 percent, largely due to upward trends in market prices of mutual fund shares, debt securities, and insurance reserves.
Financial liabilities rose modestly from increased other accounts payable.
Internationally, the ratio of households' net wealth to gross disposable income remained stable in Italy and Canada, but dropped in France and the United Kingdom for the third consecutive year.
Mixed fortunes for corporate and public wealth
Non-financial corporations' net wealth stood at €1,015 billion in 2024. Real assets, including real estate and machinery, grew, forming 56.6 percent of gross wealth.
The shares portfolio saw marked growth.
Italy's corporate indebtedness ratio declined, unlike France.
Financial corporations' gross wealth rose 1.2 percent, ending a contraction.
This was driven by shares and mutual fund shares on the asset side.
Liabilities grew, despite lower deposit funding.
General government net wealth was negative at €1,522 billion by end-2024, worsening due to a 3 percent liability increase.
Its net wealth to GDP ratio deteriorated only in Italy and France.