Italy’s economy has shown signs of stabilization and modest improvement under Prime Minister Giorgia Meloni since she took office in 2022. Recent data and government statements point to lower deficits, reduced inflation, and falling unemployment as key indicators of an economic rebound credited in part to Meloni’s policy direction.
When Meloni assumed leadership, Italy faced an economic crisis marked by high deficits, elevated inflation, and rising unemployment. In 2022, the national deficit stood at about 8.1% of GDP, inflation climbed above 12%, and unemployment hovered near 7.9%. Critics warned Europe’s third-largest economy was spiraling deeper into malaise.
Government officials and supporters argue that Meloni’s emphasis on fiscal responsibility and market confidence helped reverse some of these trends. Edmondo Cirielli, Italy’s deputy minister of foreign affairs, said public confidence returned, leading to stronger fiscal discipline, “record-high employment,” and improved credibility with international markets. Under her watch, the deficit has fallen significantly, estimated at about 3.1% of GDP, while inflation eased to roughly 1.1% and unemployment declined to about 6%.
Observers cite parallels between Meloni’s fiscal approach and conservative economic strategies like those of President Ronald Reagan, with an emphasis on reducing state liabilities and strengthening private-sector activity. Her government has also pursued tax incentives and labor market reforms aimed at boosting employment, especially among young workers.
Italy’s approval of its 2026 budget plan, which targets a further reduction of the fiscal deficit to 2.8% of GDP, reflects continued fiscal discipline while allocating funds for families, employment, and business growth. The government also balanced tax cuts with targeted new levies, including modest charges on certain imports, to maintain revenue levels without expanding deficit spending.
Despite these improvements, analysts caution that structural challenges remain. Italy’s long-term economic growth has been modest, and underlying issues such as chronic low productivity, an aging population, and slow wage growth persist. Some economists argue that recovery owes as much to temporary European Union recovery funds and cyclical factors as to domestic policy changes.
Meloni’s administration has also prioritized demographic and family support policies, asserting that a revitalized birth rate is essential for sustainable economic growth. Government leaders maintain that fostering a pro-family environment and supporting employment initiatives will help boost Italy’s long-term prospects.
Overall, while Italy’s economy shows encouraging metrics compared with recent years, the broader narrative remains one of cautious progress rather than dramatic transformation. Continued emphasis on fiscal prudence and targeted reforms characterizes Meloni’s economic approach as she seeks to solidify confidence and reinforce Italy’s position in Europe.
