Italy's General Government Debt (% of GDP), 1990-2022

Italy’s debt-to-GDP ratio has historically been high, starting at 95.5% in 1990. Structural challenges, including low economic growth and high public spending, contributed to this trajectory, with debt peaking at 135.4% in 2014 following the eurozone debt crisis. Italy’s efforts to stabilize its finances managed to plateau the debt ratio but left it above 130% for much of the 2010s.

The COVID-19 pandemic caused a sharp spike in debt to 154.9% in 2020, one of the highest levels in the European Union. While a slight recovery was observed, bringing debt to 144.4% by 2022, Italy faces ongoing fiscal challenges. Despite efforts for fiscal consolidation, its high debt remains a point of vulnerability, limiting flexibility in public finances amid economic fluctuations.