Italy, demographic crisis "paralyzes" the economy/ Working-age population will shrink by over 20% in 25 years
National statistics agency Istat said Italy's working-age population is expected to shrink by more than a fifth over the next 25 years, highlighting the country's demographic challenges.
Italy is facing a falling birth rate and a shrinking population. Last year, new births fell to a record low of around 370,000, and the population fell by 37,000 to 58.93 million, continuing a decade-long trend.
In its latest demographic forecast, Istat found that the number of people in the 15-64 age group will fall from 37.4 million in 2024 to 29.7 million in 2050, with their share in the total resident population reaching 54.3% from 63.5%.
In the same period, the percentage of residents over the age of 65 is projected to increase to 34.6% of the total, from 24.3% currently, and children up to the age of 14 will make up 11.2% from 12.2%.
Italy's long-slumping birth rate is considered a national emergency. But despite promises from Prime Minister Giorgia Meloni and her predecessors to tackle the issue, no one has so far been able to halt the decline.
Istat estimated that Italy's resident population would fall to 54.7 million by 2050, although it added that the forecast had a high margin of variability and uncertainty linked to migration trends.
In a report last year, Scope Ratings highlighted that Italy's demographics were the worst in Europe in terms of economic growth potential between 2023 and 2040, with a rapidly ageing population posing a threat to public finances.
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