Banca d'Italia releases wealth estimates for Italy's institutional sectors
Banca d'Italia and Istat today released comprehensive wealth estimates for Italy's institutional sectors, covering 2005-2024. The data provides an overview of asset changes over time, including international comparisons.
Italy's household wealth rebounds, government debt deepens
At the end of 2024, the net wealth of Italian households reached €11,732 billion, a nominal increase of 2.8 percent from 2023. However, in real terms, it remained over 5 percent lower than in 2021, primarily due to high inflation in 2022. The growth was driven by a 1.9 percent rise in non-financial assets, particularly dwelling values, and a 3.6 percent increase in financial assets, notably mutual fund shares, debt securities, and insurance reserves.
Financial liabilities saw only a modest rise.
Meanwhile, non-financial corporations recorded €1,015 billion in net wealth, with real estate and machinery continuing to grow, and their indebtedness ratio declining.
Financial corporations' gross wealth expanded by 1.2 percent, ending a contraction phase, fueled by shares and mutual fund shares.
In contrast, general government net wealth deteriorated to a negative €1,522 billion, primarily due to a 3 percent growth in liabilities, contrasting with broadly stable gross wealth.
This worsening trend was also observed internationally.
Inflation's shadow on real wealth
Italian households' real net wealth in 2024 remained over 5 percent lower than in 2021, a consequence of 2022's high inflation.
Their net wealth to gross disposable income ratio stabilized at 8.2, among the lowest since 2005. Non-financial corporations saw real assets comprise 56.6 percent of gross wealth, with shares reaching a post-2005 high.
Financial corporations held 98.1 percent of gross wealth in financial assets, though deposit funding continued its decline.
General government gross wealth composition remained stable, with non-financial assets, mainly real estate and structures, forming nearly two-thirds.
A mixed picture, with underlying concerns
Italy's nominal wealth gains mask a real decline for households, underscoring inflation's lasting impact.
The deepening negative net wealth of the general government points to persistent fiscal vulnerabilities.
While comprehensive, acknowledged data gaps for certain non-financial assets suggest a need for further measurement improvements.