Wealth in Italy: A Divided Reality

I get often asked various questions about Italy's economy from people that would like to invest here, so I thought to collect and organize some data for them. After all, understanding the financial state of Italian households is key to grasping the broader social and economic trends in the country, and if you're considering investing, well, then this information may be of use to you.

This article explores how wealth is distributed, showing the growing gap between the super-rich and those facing economic hardship. Using data from ISTAT (National Statistics Institute), the Bank of Italy, and Oxfam, we present a clear and detailed view of Italy’s financial landscape and its impact on business and entrepreneurship.

The Growth of Household Wealth

There is some good news: by the end of 2023, the net wealth of Italian households reached 11,286 billion euros. This marks a 4.5% increase from the previous year, reaching the highest levels since data tracking began in 2005. However, when adjusted for inflation, net wealth remains over seven percentage points lower than in 2021 due to the sharp price increases in 2022.

What drives wealth growth?

The rise in non-financial assets in 2023 was mainly due to real estate, as home values surged. Financial assets also grew by 7.1%, benefiting from the strong performance of stocks, mutual funds, and insurance reserves. Families shifted their money into government bonds and other securities, while bank deposits dropped by 3.2%.

Falling deposits and changing debt levels: Household deposits saw their sharpest decline since 2005, suggesting that families are moving their money into investments. Meanwhile, household debt remained stable, with minor shifts in loan balances.

For businesses, debt levels decreased, and companies invested more in machinery and equipment. Corporate deposits also fell for the first time since 2012. The financial sector saw a 3% reduction in both gross wealth and liabilities due to lower deposits and loans.

Overall, households focused on investments, while businesses reduced debt, painting a shifting financial picture.

The Rise of the Super-Rich

Although total household wealth is growing, it is not distributed equally. The number of billionaires worldwide increased, reaching 2,769 in 2024, up from 2,565 in 2023. Their combined wealth grew from $13 trillion to $15 trillion in just 12 months. The world’s 10 richest men saw their fortunes rise by nearly $100 million per day. These figures highlight an increasing concentration of wealth.

Inheritance and wealth: Over 36% of billionaire wealth comes from inheritance, showing that much of extreme wealth is passed down rather than earned. In Italy, 63% of billionaire fortunes are inherited. Every Italian billionaire under 30 gained their wealth this way. Over the next decades, more than $5.2 trillion will be transferred from billionaires to their heirs.

Italy’s billionaire class: The country now has 71 billionaires with a total wealth of 272.5 billion euros. Their wealth increased by 61.1 billion in a year—about 166 million euros daily. This rapid wealth accumulation widens the gap between the super-rich and the general population. By mid-2023, the wealthiest 10% of families controlled over eight times the wealth of the bottom half.

The Harsh Reality of Poverty

While the wealthiest accumulate more, millions of Italians struggle to meet basic needs. In 2023, 2.2 million families, totaling 5.7 million people, lived in absolute poverty. They lacked enough resources to afford essential goods and services. The percentage of poor households increased slightly, rising from 8.3% to 8.4%, while individual poverty remained at 9.7%.

Who is most vulnerable?

Larger families are more likely to be poor. Households with five or more members face a poverty rate of 20.1%, rising to 21.6% for those with three or more minor children. Single-parent families also struggle, with 12.5% below the poverty line. Over 1.3 million children and teenagers live in absolute poverty—the highest figure in a decade. Foreign-born families are hit hardest, with a 30.4% poverty rate, compared to 6.3% for native Italian households. Over 1.7 million foreigners in Italy live in absolute poverty, with a rate four and a half times that of Italians.

Poverty and work: Employment does not guarantee financial security. The poverty rate for blue-collar workers’ families is 16.5%, while self-employed families fare better, with a 6.8% poverty rate.

Regional inequalities: The South has the highest poverty rate, affecting 10.2% of households. The Northwest follows at 8%, with the Northeast close behind at 7.9%. The Center has the lowest rate at 6.7%.

Housing and poverty: Renting households suffer the most, with a 21.6% poverty rate compared to 4.7% for homeowners. Around 1 million poor families live in rental housing, making up 46.5% of all poor households. The average rent for families in absolute poverty is 371 euros per month. In households with minors who rent, the poverty rate rises to 31%.

Key Takeaways

Italy’s economy shows stark contrasts. On one hand, household wealth is rising, driven by real estate and financial investments. On the other, more people struggle with poverty, with major disparities across social groups and regions.

For entrepreneurs and executives, these trends demand attention. Understanding Italy’s economic and social landscape is crucial for making informed business decisions.

Here are four key reflections:

• Inequality: Wealth concentration is unsustainable in the long term. It leads to increased poverty, social unrest, and economic instability.
• Corporate responsibility: Businesses play a key role in addressing inequality. Companies should adopt policies that promote inclusive growth and social responsibility.
• Social innovation: Investing in programs that support vulnerable groups can create jobs and boost economic mobility.
• Sustainability: A long-term vision requires sustainable growth that protects natural resources and ensures shared prosperity.

Final Thoughts

Wealth and poverty in Italy are two sides of the same coin, and it is not just an issue in the Bel Paese: unfortunately these occurrences are widespread. As business leaders, we must take responsibility for driving change and creating a fairer, more balanced economy, but it is also clear that we can't do that alone: all stakeholders must be involved, including public institutions. It is my opinion that, in the near future, things will even get worse due to the impact of AI adoption and the consequent loss of many jobs, particularly in industries that rely on repetitive or automatable tasks. The rapid advancement of AI will likely exacerbate income inequality, as those with access to capital and technical skills benefit disproportionately while low-skilled workers struggle to adapt.

This shift makes it even more critical for governments, businesses, and civil society to work together on solutions that promote economic inclusion. Public institutions must implement policies that support reskilling and workforce adaptation, ensuring that displaced workers have opportunities in emerging industries. Businesses must also take an active role by investing in upskilling programs, ethical AI implementation, and fair labor practices.

Moreover, we need to rethink social safety nets to prevent economic hardship from deepening. Universal basic income, tax incentives for job creation, and investment in education and training could prove to be more than essential tools in mitigating the disruption caused by AI.

At the end of the day, wealth concentration and economic disparity will not resolve themselves. If we fail to act, the divide between the wealthy and the economically vulnerable will widen, leading to social unrest and instability to a scale we've never seen before. As business leaders, we have the opportunity—and the responsibility—to ensure that technological progress benefits society as a whole, rather than deepening existing inequalities.