Real wages in Italy remain below the levels seen in the year 2000, despite signs of economic recovery in 2024, according to Bank of Italy Governor Fabio Panetta. In his Concluding Remarks during the presentation of the central bank’s 2025 Annual Report, Panetta emphasized that the country’s persistent wage stagnation is rooted in low productivity.
Panetta stressed that while there have been encouraging developments in productivity, they are still insufficient to fuel sustainable growth and prosperity. He argued that a meaningful and lasting rise in wages will only be possible if Italy commits to a new era of innovation, investment in capital, and robust public sector leadership.
“To secure real wage growth, we must reignite productivity through technological advancement, infrastructure investment, and decisive governance,” Panetta said, urging a national effort to overcome structural economic barriers.
He called for a forward-looking approach where innovation is not just encouraged but embedded into Italy’s economic framework to unlock its true potential and improve quality of life for future generations.