Italy’s gross domestic product (GDP) grew unevenly across the country in 2024, with the Northeast region showing markedly weaker performance (+0.2%) compared to other areas averaging +0.9%, national statistics office Istat reported. The overall GDP growth averaged 0.7%.
Employment figures revealed stronger momentum in the South, which led with a 2.2% increase, followed by the Center (+1.8%). Job growth was more contained in the Northwest (+1.6%) and Northeast (+0.9%), resulting in a national average employment rise of 1.6%.
The South’s expansion was primarily driven by its construction sector, where value added surged 4.1% (versus +1.2% nationally) and employment jumped 6.9% (+3.8% nationally). The Financial, Real Estate, and Professional Services sector also contributed significantly to the South’s positive economic dynamics with a 2% value-added increase. Furthermore, the Wholesale & Retail Trade, Accommodation, Transport, and Communications sector in the South outperformed the national average, growing +0.6% compared to +0.1% nationwide.
Agriculture saw minimal national value-added growth (+0.4%), lagging behind Central-Northern regions. Value added declined in Manufacturing (-0.6%) and Other Services (-0.8%).
In the Northwest, Financial, Real Estate, and Professional Services (+3.2%) and Wholesale & Retail Trade, Accommodation, Transport, and Communications (+1.0%) drove economic growth, posting the country’s best sectoral performances. Conversely, value added fell in other sectors, with Manufacturing (-0.6%) and Other Services (-2.2%, the nation’s worst sectoral result) declining more sharply than nationally. Construction (-1.4%) and Agriculture (-0.7%, the only area nationally in decline) also contracted, bucking trends seen elsewhere.
Central regions witnessed value-added growth across nearly all economic sectors in 2024. Economic activity was particularly strong in Agriculture, which surged 5.2% for the country’s top sectoral performance, and Manufacturing (+1.2%), the only area nationally to see growth in this sector against declines elsewhere. Construction value added (+1.4%) matched the national average increase, while Other Services (+0.1%) saw more modest but positive growth, contrasting with declines in other areas.
Despite the Northeast’s overall subdued economic growth, Agriculture was its most dynamic sector with value added rising 4.5%. Positive value-added trends were also observed in Construction and Financial, Real Estate, and Professional Services (both +1.4%). However, Wholesale & Retail Trade, Accommodation, Transport, and Communications value added fell sharply by 1.9%, contrasting with positive results in other regions.
Nationally, Construction was the most dynamic sector for employment, growing 3.8%, followed by Wholesale & Retail Trade (+2.1%, reaching +2.9% in the South). Manufacturing recorded a subdued +0.8% employment growth, below the national average (+1.6%), with just +0.4% growth in the South.