By Marcello Condemi
On 29 January, the Bank of Italy and Istat jointly published a document on the
level of the country's real and financial wealth, which shows, against a better
condition of non-financial enterprises only (whose gross wealth increased by 2.4% and the
liabilities decreased by 2.6%), a decline in the economic-financial ratios of households and
financial companies as well as a less than positive financial and balance sheet situation of the
public administration (P.A.). It emerges, in particular, that the net wealth of households, which at
end of 2022 was €10,421bn, contracted from 2021 by 1.7% in nominal terms and by
12.5% in real terms due to inflation, breaking a positive trend that had lasted for three
years. The ratio of net wealth to gross disposable income also fell from 8.7 to 8.1%,
returned to 2005 levels, and financial assets contracted by 5.2% as a result of the
reduction in the value of shares and asset management instruments. Instead, they increased by 2.8%,
due to the increase in interest rates, the financial liabilities, by 2.1% the non
financial, due to the increase in the value of housing, and also deposits, albeit to an extent
lower than the significant growth recorded in the previous three years. There is a decrease
also in the area of financial companies whose gross wealth compared to 2021, despite the
liabilities decreased by 5.7%, mainly due to the reduction of
active deposits and securities. As far as the general government is concerned, at the end of 2022, the following are noted, although improving
compared to 2021, liabilities of €1.188bn due to the 4.7% growth in assets [linked
to the increase in value of both civil engineering works and non-residential buildings (activities
non-financial) and securities (financial assets)] - and the 6.9% reduction in liabilities
(due to falling market prices of government bonds). In the last two years, net wealth
of the general government as a percentage of GDP increased, returning in line with pre-pandemic values, however
largely surpassed in other EU countries. In 2023, however, something is moving on the
economy. GDP increased by 0.7% compared to 2022 (Istat data of 30.1.2024) and December,
compared to the previous month, both the employed and the inactive increased. The employment rate in
in particular rose by 0.1% to 61.9% (Istat data as of 31.1.2024). The above
portrays an Italy that, despite being tested by post-pandemic inflation and nearby outbreaks of war, attempts to
to climb the slope despite the difficult international context, recently enriched by the risk
inflationary as a result of the Red Sea scenario marked by aggression against the
merchant ships by Houthi rebels.
Published in the newspaper “Il Tempo” on 7 February 2024
