Italy’s foreign trade contracts in May amid weak global demand

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UCapital24 Media

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According to preliminary estimates by Istat, Italy’s exports and imports both declined in May 2025, with a sharper contraction in imports (-4.1%) than in exports (-2.3%) on a monthly basis. The export drop affected both EU markets (-1.7%) and non-EU markets (-3.1%).



In the March–May 2025 quarter, exports fell by 1.2%, and imports declined by 0.7% compared to the previous three-month period.



On a year-over-year basis, exports fell by 1.9% in value and 4.3% in volume. The annual drop is driven by a 4.6% decline in non-EU exports, only partially offset by a 0.7% increase in EU-bound exports. Imports also declined by 1.7% in value and 2.4% in volume, with a stronger contraction in non-EU imports (-3.4%) than from EU partners (-0.4%).



The sectors contributing most to the export downturn were:

  1. Sporting goods, games, musical instruments, jewelry, medical devices, and other n.e.c. products (-15.1%)
  2. Machinery and equipment n.e.c. (-4.1%)
  3. Computers, electronic and optical devices (-15.9%)

Only a few sectors showed annual growth:

  1. Pharmaceuticals, chemical-medical, and botanical products (+39.0%)
  2. Food, beverages, and tobacco (+3.5%)

In terms of trading partners, the largest negative contributions came from:

  1. Turkey (-22.5%)
  2. China (-22.6%)
  3. UK (-7.4%)
  4. Netherlands (-8.4%)



On the other hand, exports increased to:

  1. Spain (+15.6%)
  2. Switzerland (+9.2%)
  3. United States (+2.6%)


Over the January–May 2025 period, exports rose by 1.6% year-on-year, primarily driven by:

  1. Pharmaceuticals, chemical-medical, and botanical products (+38.8%)
  2. Food, beverages, and tobacco (+5.0%)
  3. Transport equipment (excluding motor vehicles) (+7.3%)
  4. Basic metals and fabricated metal products (excluding machinery) (+4.1%)


Declines were seen in other sectors, especially:

  1. Refined petroleum products (-26.1%)
  2. Motor vehicles (-11.7%)


The trade balance in May stood at +€6.16 billion, slightly below the €6.38 billion surplus of May 2024, but well above April’s €2.25 billion and beating market expectations of €2.87 billion. The energy deficit narrowed to -€3.46 billion from -€4.02 billion a year earlier, while the non-energy surplus declined to €9.62 billion from €10.40 billion.

Import prices dropped by 1.4% month-on-month and 3.0% year-on-year, accelerating from a -1.5% annual decline in April.