Why Is Italy’s Economy Collapsing?

What No One Is Saying About One of Europe’s Largest Economies

Photo by Michele Bitetto on Unsplash

Italy is known for its luxury exports, world-class craftsmanship, and cultural influence. As the third-largest economy in the European Union, it once stood as a symbol of post-war recovery and industrial strength.

But today, Italy faces deep economic struggles. Despite its size and status, the country is slipping under mounting debt, stagnant growth, an aging population, and outdated industries.

So what went wrong, and can Italy recover before it’s too late?

Italy’s Economy Is Facing Multiple Crises at Once

Italy is not just dealing with one economic issue. It is grappling with a combination of serious problems:

• Extremely high national debt
• Slow and uneven economic growth
• Shrinking workforce due to aging and youth emigration
• Persistent regional inequality between North and South
• Weak industrial competitiveness in global markets
• Widespread tax evasion and a growing underground economy

Despite being a significant economic power in the EU, Italy has one of the highest poverty…