Poverty in Italy remains a challenge the country faces. Italy has an older population and not great job opportunities, and has seen an increase in poverty in recent years. The COVID-19 pandemic has worsened the trend in recent years. However, the issue of poverty in Italy has been an ongoing problem for a long time, with a slight population decline and a stagnant economy. Here is everything to know about poverty in Italy.

Poverty Rate

According to Reuters, the poverty rate has risen to  9.8% or 5.1 million people in 2023. One contributing factor can be the COVID-19 pandemic, Reuters notes, which caused a health crisis and a slowdown in economic recovery. The hardest hit regions in Italy in regards to increased poverty are in the south at “12.1,” lower in the center and the north. The COVID-19 pandemic caused a deeper health disparity, disproportionately hurting the poor. The poor were hit the hardest economically than those who were not. Among the older population group, the poor lack the resources they need than those who are not poor.

Poverty in Italy affects 5.1 million Italians living below the poverty line. Euro News reported that 2.18 million families also live below the poverty line as of 2023. Meanwhile, in southern Italy alone, 56% of the population lives in poverty.

A significant number of families in Italy are in poverty, representing almost half of the total people living in poverty. Most Italians living in poverty are predominantly in southern Italy. 

Aging Population

Another issue with poverty in Italy is the recent rise in poverty, Italy is due to the aging population. Italy’s median age is 48.4 years old. The older the population of a country, means more retirees and a decline in the workforce. This could lead to a strain on the economy and force government action to help its citizens in need.

All of the economic indicators in Italy show that the economy will likely experience slower growth in the coming years due to a continued increase in the elderly population, which will continue the slower economic trend. When Italy’s population begins to contract, it will create new challenges to Italy’s economy. 

The Economy

The economy in Italy is slowly growing, with its annual GDP at 0.7% in 2024. The unemployment rate is steadily high at 6.8%. The GDP per capita is $39,003.30, which indicates a low GDP output per person. The average person in Italy’s per capita GDP is considered poor because many citizens don’t make enough and therefore cannot afford to spend as much, only spend on essential needs to get by.

Italy’s increase in poverty reflects the recent events that have unfolded, which have naturally created worsening economic conditions. The COVID-19 pandemic worsened the impact on Italy’s economy due to the shutdown, which the economy has not yet fully recovered from. 

Southern Italy, in particular, is the poorest area in Italy because it lacks job opportunities compared to the center and the north. The economy in the south relies on agriculture, which tends to have lower income and little economic activity. 

Solutions

The Italian government approved the first income initiative called the Inclusion Income in 2017. Since its implementation in 2017, the program has been reformed twice. The government implemented the newer program in 2024, and the new initiative is called the Inclusion Allowance to help people in need.

Almost 40% of its citizens are covered under the program, and almost half of Italy’s population benefits. The program provided supplemental income to the disadvantaged population in the country, particularly families. The citizens who work but are poor are also qualified for the program. Many of the people in need who will benefit from the program are from the south. The government of Italy has partnered with the World Bank to implement the initiative because of its goal to fight against poverty. The effect the program has is to lift people out of poverty, and approximately “8,000 communities” in Italy use the inclusion allowance for those in need. The initiative would help boost economic upward mobility.

Looking Ahead

In the case of poverty in Italy, the poverty rate could likely increase under the current conditions the country faces from its aging population and a stagnation of economic conditions. Even though the COVID-19 pandemic is not the primary cause of the ongoing poverty struggle that Italy faces, it has not helped the situation either. There is no easy fix to the problem, but there are solutions that will take time to see results. The Italian government has taken action. Their initiative for implementing a national income program is helping to improve people lives in need to get out of poverty. 

– Michael Glaser

Michael is based in Brookfield, WI, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr