Report says Italy’s demographics are the worst in Europe

In a recent interview with Scope Ratings, a European credit rating agency, they revealed some concerning insights about Italy’s economic growth potential from 2023 to 2040. According to their report, Italy has the worst demographic structure in Europe, with a rapidly aging population placing significant pressure on the country’s already strained public finances.

The data indicates that the working-age population in Italy is projected to decline by nearly 19% during this period, marking the largest decrease in Europe—outpacing Germany and Spain, which are both expected to see a 14% reduction, and France, with just a 2% drop. This decline in the workforce underscores the increasing importance of labor market reforms for Italy’s long-term economic outlook.

Additionally, reports from Reuters highlighted that Italy has the lowest employment rate among the 27 EU countries. In 2023, the employment rate for Italians aged 20 to 64 stood at 66.3%, significantly below the EU average of 75.3%.

This decline is compounded by alarming demographic trends, as official statistics show that Italy recorded just 379,000 births in 2023, marking a continuous decline for the 15th consecutive year and reaching the lowest figure since 1861.