Italy posted a current account surplus of €4,228 million in December 2024, almost doubling from €2,188 million in the corresponding month of the previous year. This notable increase was primarily driven by a wider goods surplus, which expanded to €6,448 million from €5,781 million in December 2023.
Italy current account surplus widens sharply
The improvement in the goods surplus indicates stronger exports and possibly a more favorable trade environment for Italy’s manufacturing and industrial sectors.
Moreover, the primary income balance, which tracks earnings on investments and wages from abroad, also showed a positive shift, registering a surplus of €435 million, a significant turnaround from the deficit of €655 million seen last year. This improvement reflects better returns on Italian investments abroad or a reduction in payments to foreign investors.
Services balance sees a narrowing of its deficit
The services balance saw a narrowing of its deficit, reducing to €547 million from €963 million in December 2023. This reduction suggests that Italy's tourism and other service sectors, which include transportation and financial services, performed better or faced lower outflows compared to the same period in the previous year.
However, the secondary income balance, which includes remittances, transfers, and other smaller financial flows, widened its gap, rising to €2,108 million from €1,975 million. This increase indicates a higher outflow in transfers, which could be due to increased payments or remittances from Italy to other countries.
Overall, the December 2024 current account surplus reflects an improvement in Italy's external economic position, driven by stronger goods trade and a better primary income balance, although challenges remain in the secondary income sector.
