Italy posted a trade deficit of EUR 264 million in January 2025, a sharp reversal from the EUR 2.485 billion surplus recorded in the same period last year and well below market expectations of a EUR 5.15 billion surplus.
Italy records first trade deficit in two years
This marked the country’s first trade deficit in two years, primarily driven by a surge in imports.
Imports soared by 8.8% year-over-year to EUR 48.983 billion, with natural gas purchases jumping 24% to EUR 2.142 billion. The increase came as multiple European nations scrambled to secure alternative energy supplies at higher prices following the halt of Russian gas flows through Ukraine. Additionally, imports of machinery and equipment surged 14.3% to EUR 3.277 billion, while metals and chemicals saw significant gains, rising 13.5% to EUR 5.475 billion and 20% to EUR 4.863 billion, respectively.
Exports grow at a more modest pace
Meanwhile, exports grew at a more modest pace of 2.5% to EUR 48.719 billion. A decline in machinery exports (-3.1% to EUR 6.877 billion) weighed on overall export performance, partially offset by a strong 33.6% increase in pharmaceutical goods shipments, which reached EUR 5.154 billion. The data highlights the impact of rising import costs on Italy’s trade balance while showcasing continued demand for certain high-value exports.
