## Italy: Selected Issues

_IMF Staff Country Reports, July 22, 2025_

## Source details

**Canonical URL:** [Italy: Selected Issues](https://www.imf.org/en/publications/cr/issues/2025/07/21/italy-selected-issues-568829)

## Other formats

- [Markdown version](/en/publications/cr/issues/2025/07/21/italy-selected-issues-568829/index.md)
- [Structured JSON version](/en/publications/cr/issues/2025/07/21/italy-selected-issues-568829/index.json)
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## Bibliographic details
- Published: July 22, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229018241.002

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### Overview
- Explores potential growth in Italy as it adjusts to a rapidly aging population, which is expected to significantly dampen economic expansion.
- Emphasizes urgency of policy interventions to counteract demographic drag and sustain potential growth.
- Notes that while other factors could influence growth over time, the clear downward trend underscores the need for policy action.

### Major findings
- An aging population with a low natural replacement rate will shrink the labor force and compress potential growth.
- Policies already in place, such as the indexing of the retirement age to longevity, can support labor force participation, but fully mitigating the demographic drag remains challenging.
- The National Recovery and Resilience Plan includes vital investments and reforms to boost productivity and growth.
- Boosting female labor force participation, improving skill levels, and directing investment toward innovative sectors can significantly mitigate the negative effects of aging.
- Coordinated policy actions at both European and national levels are essential to achieve a lasting impact.

### Policy recommendations
- Increase female labor force participation.
- Enhance workforce skills.
- Boost total factor productivity.
- Implement a comprehensive package of reforms to enhance overall productivity and growth.
- Direct investment toward innovative sectors.
- Coordinate policy actions at European and national levels.

### Key themes and terms
- Subject tags: Environment, Greenhouse gas emissions, Production, Productivity, Renewable energy, Total factor productivity
- Keywords: climate loss, electricity trading, emissions intensity, Europe, Global, Greenhouse gas emissions, growth slowdown, labor force participation, Productivity, Renewable energy, staff team, Total factor productivity

### Publication metadata (as provided on the landing page)
- Pages: 43
- Volume: 2025
- Issue: 202
- DOI: https://doi.org/10.5089/9798229018241.002
- Stock No: 1ITAEA2025002
- ISBN: 9798229018241
- ISSN: 1934-7685
- Publication date shown on page: July 22, 2025

*International Monetary Fund. European Dept. "Italy: Selected Issues", IMF Staff Country Reports 2025, 202 (2025).*

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## Content in this bundle

- **Italy: Selected Issues, IMF Country Report No. 2025/202; July 2025**
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_Source: https://www.imf.org/en/publications/cr/issues/2025/07/21/italy-selected-issues-568829_