Italian Real Wages Remain 8.8% Lower Than 2020, Says UPB

Rome: Italian real wages are still significantly lower than 2020, showing an 8.8% drop, the Parliamentary Budget Office (UPB) said Friday. “The growth of hourly contractual wages in the second quarter slowed, particularly in the private sector, while the public sector accelerated,” it said.

According to Ansa News Agency, overall wages slowed to 3.2% year-on-year, and to date, real wages remain significantly lower than the 2020 average (-8.8%). Inflation and employment, however, remain stable. Third-quarter GDP is stagnant, with outlook risks, the office went on.

“The estimates from the UPB’s short-term models indicate a weak, almost stagnant, economic situation for the third quarter, with GDP essentially unchanged compared to the previous quarter,” the office stated in its October Economic Note. “In the final part of the year, production momentum should gradually strengthen.”

“The GDP growth forecast for the whole of 2025 remains at around 0.5%, as indicated by the UPB when validating the macroeconomic scenario in the 2025 Public Finance Planning Document (DPFP). However, the outlook, the public accounts authority warns, is “fraught with significant risks, especially due to the fragmented international context.”