Italy on the rise: Is Italy overtaking Germany as an economic power?

Italy on the rise: Is Italy overtaking Germany as an economic power?

Rome - The latest data shed light on the economic situation in Italy and Germany: While the German economy is struggling with growth problems, Italy is experiencing an unexpected upswing. The question is whether Italy will overtake Germany as the strongest economic power in Europe.

Over the course of 2023, Italy recorded economic growth of 0.9 percent, while Germany recorded a decline of 0.3 percent over the same period. These figures illustrate the current challenges facing the German economy, especially since the outbreak of the corona pandemic.

The government under Prime Minister Giorgia Meloni sees the economic success as its achievement. However, experts such as Italian economist Nino Galloni express concerns. Galloni argues that the supposed growth is largely due to increasing national debt. He warns that Italy's low growth may not be enough to pay off the debt.

A key factor in Italy's economic growth was the energy-saving support program known as “Superbonus,” launched under the government of Giuseppe Conte. Although the program undoubtedly gave the economy a boost, there were also criticisms, particularly regarding potential inflationary effects. The subsequent government under Giorgia Meloni halted the program, which in turn raised concerns about possible stunting of growth.

Despite current developments and relative economic growth in Italy, Germany is expected to continue to maintain its leading position among European economic powers, particularly when measured by metrics such as the unemployment rate or GDP per capita. Nevertheless, according to the European Central Bank, Italy has a lead in terms of social equality: while an average Italian household has 161,062 euros, the Germans have an average of just 106,206 euros. These differences indicate pronounced social inequality within countries.