France vs Italy: GDP, Growth & Trajectory

Turning Point

In 2024, France's GDP stood at $3.16T versus Italy's $2.38T — a ratio of 1.33x. This figure marks not only the persistence of a long-standing output gap between the euro area's second and third largest economies but also a subtle inflection in the post-pandemic trajectory. During the shock year of 2020 the ratio had jumped to 1.39x, as Italy's GDP contracted far more sharply than France's, falling to $1.91T while France held at $2.65T. The subsequent four-year recovery saw Italy's nominal output expand by nearly one-quarter, outpacing France's 19% rise and pulling the ratio back toward the narrower gaps recorded in the 2010s. That narrowing, though modest, signals that the forces driving the two economies have entered a new phase — one shaped by the European Union's Next Generation EU recovery instrument, diverging demographic foundations and a recalibration of industrial competitiveness.

The 1.33x ratio in 2024 is best understood against the pre-pandemic record. In 2010, France's GDP exceeded Italy's by a factor of 1.23. That multiple widened gradually through the euro-area debt crisis years, reaching 1.39 at the height of COVID-19. The post-2020 compression therefore suggests that Italy's rebound has been more than a mechanical bounce-back; it reflects the deployment of substantial public investment co-financed by Brussels. According to European Commission assessments, Italy became the largest beneficiary of the Recovery and Resilience Facility, receiving front-loaded grants and loans that supported digitalization, green transition and infrastructure. France, while also a significant recipient in absolute terms, commanded a smaller share relative to its GDP. This differential fiscal impulse helped Italy's construction and manufacturing sectors recover swiftly, narrowing the growth differential in 2021-2023 and into 2024.

Yet the turning point is not solely about aggregates. In purchasing-power-parity terms the 2024 GDP gap is narrower: France's $4.34T PPP versus Italy's $3.63T PPP gives a ratio of 1.20. The per-capita PPP convergence is even more striking — $63,399 against $61,634, a mere 1.03 ratio. This near-equality in real living-standard metrics, despite a nominal per-capita gap of 1.14, underscores that the two societies are operating at broadly similar levels of productivity once price levels are accounted for. The 1.33x headline GDP ratio therefore largely reflects Italy's smaller population (59.0 million against 68.6 million) and a lower nominal valuation of output owing to comparatively depressed domestic prices and wage levels that have struggled to grow since the global financial crisis. Thus the turning point is as much about statistical optics as about economic substance: Italy's long-standing struggle to convert real output gains into nominal per-capita income growth has kept the headline ratio elevated even when Italians and French citizens command similar purchasing power.

Simultaneously, the labor markets of the two countries have undergone distinct shifts that condition this turning point. In 2025, unemployment in Italy stood at 6.39%, significantly below France's 7.54%. The gap reflects Italy's extraordinary increase in employment over the past decade — often in services and fixed-term contracts — but also a persistently low participation rate, especially among women and younger workers. France, by contrast, has maintained higher participation and slightly higher unemployment, absorbing a growing workforce. The juxtaposition of a lower jobless rate but smaller effective labor pool in Italy contributed to the recent growth dynamics: as the post-pandemic hiring spree pulled more Italians into employment, aggregate GDP rose, yet the demographic headwinds began to bite earlier than in France. This duality — stronger employment revival against a shrinking working-age base — marks the 2024 data as a crossroads where cyclical recovery started to meet structural constraints.

Current State

In 2024, the comparative statistics paint two mature, high-income European economies that diverge notably in size, sectoral make-up and nominal wealth but converge closely when measured by real household consumption. France's nominal GDP of $3.16 trillion remains the world's seventh largest, powered by a population of 68.6 million and a per-capita income of $46,145. Italy's $2.38 trillion economy, ranked eighth globally, supports 59.0 million people at $40,305 per capita. The $780 billion nominal gap is thus explained roughly equally by the 9.6 million population difference and a 14.5% per-capita shortfall. When adjusted for purchasing power, the aggregate gap shrinks to $710 billion (PPP GDP of $4.34T versus $3.63T), and per-capita PPP becomes nearly indistinguishable at $63,399 in France against $61,634 in Italy — a spread of barely 2.9%.

Real growth in 2024 was subdued in both countries, lifting French GDP by 1.15% and Italian GDP by 0.71%. The lower expansion in Italy partly reflects the fading of the construction-led boom that had been fuelled by the "Superbonus 110%" tax credits and EU-funded public works. Inflation dynamics also diverged: France recorded 2.16% consumer price growth compared with just 1.04% in Italy. The gap reflects differences in energy market structures, administered price policies and the relative weight of services inflation. In France, where the state retained a stronger buffer role on electricity tariffs, the unwinding of support measures pushed inflation higher in 2024, whereas Italy's domestically weak demand and lower wage growth kept underlying pressures muted. Both countries nevertheless remained below the euro-area average, and core inflation was trending toward the ECB's 2% target by year-end.

France versus Italy — Key Economic Indicators (2024 or latest available)

Indicator	France	Italy
GDP (nominal, 2024)	$3.16 trillion	$2.38 trillion
GDP PPP (2024)	$4.34 trillion	$3.63 trillion
GDP per capita (nominal, 2024)	$46,145	$40,305
GDP per capita PPP (2024)	$63,399	$61,634
Real GDP growth (2024)	1.15%	0.71%
Inflation, CPI (2024)	2.16%	1.04%
Unemployment rate (2025)	7.54%	6.39%
Population (2024)	68.6 million	59.0 million
Agriculture, value added (% of GDP, 2024)	1.30%	2.00%
Industry, value added (% of GDP, 2024)	17.21%	22.33%
Services, value added (% of GDP, 2024)	70.91%	65.05%
Life expectancy at birth (2023)	82.93 years	83.70 years

The sectoral breakdowns reveal one of the most persistent structural contrasts. France derives 70.9% of its value added from services — notably in tourism, finance, information technology and luxury goods — while Italy's services share is 65.1%. In return, Italy's industrial sector claims 22.3% of GDP against 17.2% in France, testament to its extensive manufacturing base in machinery, automotive components, pharmaceuticals, fashion and food processing. Agriculture, though small in both nations, is notably larger in Italy (2.0%) than in France (1.3%), reflecting Italy's high-value food specialties and wine production. These structural differences shape everything from trade patterns to labour market resilience: the French economy is more sensitive to global services demand and internal consumption, while Italy's business cycle is tightly linked to industrial orders, especially from Germany and the rest of the euro area.

Fiscal and external accounts also colour the 2024 picture, although detailed debt-to-GDP ratios are not part of the base data set. What can be observed from the national statistics is that Italy's lower inflation and modest nominal growth helped to preserve a current account surplus, whereas France's current account remained in deficit, linked to higher domestic energy bills and strong import demand. Both countries, however, were on a trajectory of gradually reducing budget deficits after the pandemic, albeit from elevated levels. According to Eurostat releases, the fiscal adjustment in Italy was faster in 2023-2024 thanks to higher-than-expected tax revenues and the phasing out of energy support, while France's consolidation was more measured, but both remained under the EU's excessive deficit procedure. These fiscal postures interact with the demographic outlook, a theme explored later.

Historical Trajectory (1960-2024)

In 1960, the Italian economy was still emerging from post-war reconstruction with a nominal GDP of $42.0 billion and a per-capita income of $837. France, larger and richer, produced $62.0 billion, or $1,307 per person — a per-capita ratio of 1.56 and an aggregate ratio of 1.48. The subsequent two decades, often referred to as Italy's economic miracle, transformed that picture. By 1980, French GDP had risen to $695.0 billion while Italy's had climbed to $479.2 billion, closing the aggregate ratio slightly to 1.45. More remarkable was the per-capita progress: Italy's $8,494 against France's $12,595 meant the gap had narrowed from 56% to 33%. Rapid industrialization in the north, rising exports of machinery, textiles and automobiles, and the expansion of a modern service sector pulled millions of Italians out of agriculture and into higher-productivity activities.

The 1990 snapshot captures the high-water mark of convergence. France's GDP reached $1.26 trillion and Italy's $1.17 trillion; the ratio of 1.08 was the smallest in the entire 1960-2024 series. Per-capita GDP stood at $21,661 in France and $20,705 in Italy — a difference of less than 5%. This moment of near-parity reflected Italy's successful participation in the European Exchange Rate Mechanism, disciplined monetary policy that brought inflation down, and a still-dynamic manufacturing sector. Yet beneath the surface, structural divergences were already accumulating: Italy's public debt had surged past 100% of GDP at the turn of the 1990s, its fertility rate had fallen sharply, and its political system grappled with the Tangentopoli corruption investigations that disrupted economic governance.

The 1990-2000 decade marked the beginning of a widening gap that would define the next 30 years. In 2000, French GDP reached $1.36 trillion while Italy's stood at $1.15 trillion, lifting the ratio to 1.18. Per-capita income in France increased to $22,421, whereas Italy's barely moved to $20,198, revealing a period of stagnation made worse by the loss of competitive advantage after lira devaluations were no longer available following the adoption of the euro in 1999. Structural reforms in labour and product markets advanced more slowly in Italy than in France, which, despite its own rigidities, benefited from deeper integration of its services sector, stronger demographic support and larger corporations capable of scaling in the single market.

By 2010 the divergence had crystallized further. France's GDP stood at $2.65 trillion, Italy's at $2.15 trillion, a ratio of 1.23. Per-capita figures were $40,842 and $35,910 respectively — a gap of 13.7%. The global financial crisis and the subsequent sovereign debt turmoil hit Italy with particular severity; Italian real GDP was still below its 2007 level in 2010. France, despite sluggish growth, had a more diversified economy and a banking sector less exposed to the sovereign-bank doom loop, allowing it to lose less output. The gap continued to widen as Italy experienced a double-dip recession in 2012-2013, while France managed slightly positive growth. Throughout this period, both economies de-industrialised further, but Italy's loss of manufacturing capacity — especially in labour-intensive branches exposed to Chinese competition — was more pronounced.

The pandemic year 2020 delivered a severe asymmetric shock. Italy's GDP dropped to $1.91 trillion, a decline of 11% in nominal terms from 2010, while France remained at $2.65 trillion, essentially unchanged from its 2010 level. Thus the ratio ballooned to 1.39. Italy's early and intense exposure to COVID-19, combined with a larger reliance on tourism and a longer lockdown in Lombardy and other industrial heartlands, drove the deepest peacetime contraction since the 1940s. France's quicker rebound in manufacturing and a massive fiscal response cushioned its collapse. In per-capita terms, France stood at $39,200 versus Italy's $32,024, a gap of 22.4% — the widest in the series.

Between 2020 and 2024, a recovery partially reversed the pandemic distortion. Italy's GDP advanced 24.6% to $2.38 trillion, while France's grew 19.2% to $3.16 trillion. The 2024 ratio of 1.33 therefore sits between the 2010 and 2020 extremes. This four-year trajectory was powered by a combination of pent-up demand for services, the European Recovery and Resilience Facility, and an export boom. Italy, traditionally a slower grower, outpaced France in the 2021-2023 window, propelled by a strong rebound in construction and industrial orders. The per-capita gap also receded from its 2020 peak, with Italy reaching $40,305 against France's $46,145 — a ratio of 1.14. The trajectory thus tells a story of miraculous convergence, then slow divergence, pandemic rupture and a partial, still fragile re-alignment.

Per Capita Reality

Nominal GDP per capita places France 14% ahead of Italy in 2024: $46,145 versus $40,305. Over the full 1960-2024 span, the gap compressed from 56% in 1960, hit a minimum of less than 5% around 1990, and has since fluctuated in a 10-20% band. The re-widening after 1990 reflects Italy's well-documented productivity stagnation: total factor productivity, according to OECD estimates, has grown at near zero in Italy for more than two decades, while France recorded modest but positive gains. Hours worked per employee, labour force participation and human capital accumulation all contributed to the diverging trajectories. Even as Italy's headline GDP recovers cyclically, the per-capita gap has proven sticky because nominal wage growth in Italy has lagged behind France's, especially when denominated in a common currency.

The picture changes markedly when incomes are expressed in purchasing-power-parity terms. France's per-capita PPP of $63,399 is only 2.9% above Italy's $61,634 — effectively a statistical tie once measurement uncertainties are considered. This convergence occurs because the Italian price level is systematically lower: rents, food, personal services and many public tariffs cost less in Milan or Rome than in Paris or Lyon. The International Comparison Program run by the World Bank confirms that Italy's price level index (relative to the US) is approximately 0.66, while France's is around 0.73, explaining why the same nominal income buys more in Italy. In terms of actual material living standards — access to housing, education, healthcare and consumption — the two populations are nearer to each other than the nominal headline suggests.

Nevertheless, the per-capita reality hides a significant employment gap that affects how income is generated. Italy's employment rate (persons aged 20-64) trailed France's by over 10 percentage points for many years, though the gap has narrowed with the recent job surge. As of 2024, a larger share of the French working-age population is employed, pushing aggregate GDP higher per head of total population. When output is measured per hour worked, Italian productivity approaches French levels, particularly in manufacturing. The weakness of the per-capita measure therefore reflects not inability to produce but lower utilization of the potential workforce — especially among women and in the southern regions. Structural reforms in the 2010s and 2020s, including the "Jobs Act" and later the National Recovery and Resilience Plan measures, have started to lift participation, but the legacy of early retirement schemes, high youth inactivity and a large informal economy continues to depress total employment relative to France.

Cross-country comparisons of median disposable income, as compiled by Eurostat, confirm that the PPP-adjusted median in Italy has stagnated since the late 1990s whereas in France it has grown slightly. Yet Italian household wealth — buoyed by high home-ownership and sizeable private savings — remains elevated, and the poverty rate, after transfers, is below the EU average in both countries. The per-capita story is therefore one of two mid-life economies grappling with productivity headwinds; France has maintained a modest nominal lead, but the real consumption gap has almost disappeared. Going forward, the capacity of Italy to boost its employment rate further and to funnel EU investment into productivity-enhancing sectors will determine whether the remaining nominal per-capita gap narrows again or whether structural forces keep it entrenched around the 1.14 ratio.

Sector Composition

France's value-added structure in 2024 tilts heavily toward services, which accounted for 70.9% of GDP. Tourism stands out as a global leader — France remained the world's most-visited destination in 2023, a position reaffirmed in 2024 — generating receipts that filter through accommodation, transport, culture and retail. Luxury conglomerates anchored in Paris (LVMH, Hermès, Kering) drive high-value services such as design, marketing and intellectual property management, alongside a robust financial sector centred in La Défense. Information and communication services, buoyed by a dynamic start-up ecosystem and major telecoms groups, further expand the services share. Industry, at 17.2% of GDP, concentrates on aerospace (Airbus), automotive (Stellantis, Renault), energy (nuclear power generation and technology exports), and chemicals, but the country has experienced a steady decline of traditional manufacturing employment similar to other advanced economies.

Italy's economy retains a distinctively larger industrial footprint at 22.3% of GDP, making it the second most industrialised large euro-area member after Germany. The "Made in Italy" model is built on thousands of small and medium enterprises specialised in machinery, precision engineering, automotive components, pharmaceuticals, agri-food and fashion — many of them clustered in the industrial districts of Lombardy, Veneto and Emilia-Romagna. Despite intense global competition, Italy remains the world's fifth or sixth largest manufacturing country by value added, according to World Bank classifications. Services contribute 65.1% of GDP, a share that has risen slowly over the decades, with tourism playing a vital but less dominant role than in France; Italy is the world's fifth most-visited country, its cultural heritage and gastronomic tradition yielding substantial receipts. Agriculture, at 2.0% of GDP, is higher than in France (1.3%) and encompasses world-renowned wine, olive oil, pasta wheat and cheese production, often integrated with tourism and territorial brands.

The sectoral divergence helps explain the two economies' different sensitivities to global shocks. France's services-heavy structure makes it more reliant on domestic purchasing power and international tourism flows, whereas Italy's industrial sector is tightly coupled to the European manufacturing cycle, especially German capital goods demand. The euro-area energy price spike of 2022-2023 hurt both, but Italy's energy-intensive industries (ceramics, steel, paper) were hit harder, while France's nuclear fleet provided a cushion after maintenance-related supply interruptions were resolved. In response, both countries accelerated investment in renewables and energy efficiency, backed by EU funds. Looking ahead, France's ambition to re-industrialise — illustrated by "France 2030" subsidies for green industries — could raise its industry share, while Italy's National Recovery and Resilience Plan dedicates large sums to digitalisation and the twin transition, potentially nudging its services share upward. Still, as of 2024, the structural contrast of a services-led France and an industry-anchored Italy persists as one of the most salient features of the bilateral comparison.

Trade Relationship Between the Two

France and Italy are deeply intertwined through the European single market, with bilateral trade constituting one of the densest commercial relationships within the euro area. According to UN Comtrade data, each country routinely ranks among the top three trading partners of the other, alongside Germany. The commercial exchange is dominated by intra-industry trade: two-way flows in automobiles, vehicle parts, pharmaceuticals, machinery and semi-processed goods reflect integrated supply chains that have been built since the 1960s and deepened after the Schengen Area and the euro removed all currency and border frictions. French customs statistics indicate that in recent years the bilateral goods trade volume has remained well above €80 billion annually, with Italy typically running a modest surplus in goods and France recording a surplus in services, particularly in financial, insurance and consulting services that support industrial operations.

The composition of trade mirrors the two countries' sectoral specialisations. Italian exports to France centre on mechanical engineering products, automotive components (many destined for Stellantis assembly lines that span both nations), electrical equipment, textiles and clothing, and food products — Parmesan, pasta, wine and olive oil. French exports to Italy, in turn, consist largely of aerospace products (Airbus parts and engines), pharmaceuticals, chemicals, luxury goods and automotive parts. The production networks of Stellantis, created from the merger of PSA and Fiat Chrysler, symbolise the interdependence: engines might be cast in Italy, gearboxes assembled in France, and final assembly split across multiple plants on both sides of the Alps. This entanglement means that any disruption in one country quickly propagates to the other, as was evident during the 2020 lockdowns when cross-border supply of intermediate goods was temporarily halted.

Beyond goods, trade in services has expanded significantly. French tourists represent one of the largest national contingents visiting Italy each year, and Italian tourism in France is equally robust, though aggregate spending data show France's trade surplus in travel services with Italy, according to OECD statistics on trade in services. Investment links are equally profound: French banks (Crédit Agricole, BNP Paribas) are major players in Italian retail and corporate banking, while Italian energy groups (Enel, Eni) and construction firms have a notable presence in France. The integrated nature of the relationship means that bilateral trade is highly stable, but it also transmits shocks — tight monetary policy in the eurozone simultaneously dampens demand in both markets, and movements in the euro exchange rate affect the competitiveness of each country's exports in similar ways.

In the wake of the pandemic and energy crisis, trade patterns have undergone some reorientation. France's push to relocate strategic production of pharmaceuticals and batteries (part of "France 2030") and Italy's National Recovery and Resilience Plan investments in hydrogen and renewable energy infrastructure are altering the composition of cross-border flows. French customs data from 2023 suggest a rise in trade of electrical equipment and batteries, while Italian data indicate growth in machinery sales linked to green transition projects. Nevertheless, the fundamental architecture remains one of high complementarity and low barriers, anchored in EU single market rules. The ongoing challenge for both countries is to shield their bilateral trade from supply-chain vulnerabilities — a topic that has prompted joint initiatives under the framework of the Quirinal Treaty, the 2021 bilateral co-operation agreement that deepens their partnership across economic, industrial and strategic sectors.

Demographics & Future Outlook

Demographic fundamentals constitute the most powerful long-term driver of the widening GDP gap. In 2024, France counted 68.6 million inhabitants versus Italy's 59.0 million — a difference of 9.6 million that alone accounts for roughly half of the nominal GDP gap. Behind this raw number lies a divergence in natural population growth: France's total fertility rate (estimated at approximately 1.8 children per woman in 2023, according to Eurostat) remains among the highest in the European Union, while Italy's fertility rate hovered around 1.25. Consequently, France continues to record modest positive natural population change, whereas Italy has experienced negative natural growth since 2015. Net migration flows have partly compensated Italy's shortfall, but the overall population has been declining since the mid-2010s, a trend that is projected to accelerate.

Age structures compound the challenge. Italy's old-age dependency ratio — the number of persons aged 65 and over relative to the working-age population — is one of the highest in the world, surpassed in Europe only by Japan's globally extreme ratios. Life expectancy, meanwhile, slightly favours Italy: 83.70 years in 2023 compared with 82.93 in France, reflecting enduring advantages in diet and lifestyle. The combination of lower births and longer lives means that Italy's working-age population (15-64 years) is shrinking by close to one percentage point per year according to UN World Population Prospects data. France's working-age population has also begun to edge downward, but at a much slower pace, giving it a demographic dividend relative to its southern neighbour that is expected to last well into the 2030s.

These demographic contours have direct consequences for potential GDP. The IMF's World Economic Outlook regularly identifies the labour-supply drag as the primary reason Italy's trend growth is estimated below 1% per year, compared with France's trajectory of around 1.2-1.4%. Even if Italian productivity were to accelerate, the shrinking worker pool would limit the attainable rate of GDP expansion. France, by contrast, has a larger labour force that has grown thanks to both demographics and rising participation, particularly among older workers after pension reforms. The 2024 growth numbers — 1.15% versus 0.71% — already reflect this underlying divergence. Looking forward, the United Nations' medium-variant projections suggest Italy's population could drop below 50 million by 2050, while France stabilises above 67 million, implying that the sheer weight of people will keep the aggregate GDP multiple to France's advantage.

Policy responses are attempting to blunt the demographic headwind. Italy's 2024-2025 budget expanded family allowances and cut taxes on labour to encourage higher female participation and larger families, while the French government, despite successive pension overhauls, has maintained a generous family-support infrastructure that continues to underpin its relatively high fertility. Both countries also rely increasingly on immigration to fill labour shortages, though political constraints remain tighter in Italy. The unemployment differential — 7.54% in France (2025) against 6.39% in Italy — underscores that Italy's lower jobless rate is partly a symptom of a smaller pool of active jobseekers rather than a fully healthy labour market. For the decade ahead, the interplay of demographic drag, investment under the EU's Next Generation initiative and the energy transition will define the two economies' trajectories. Barring a significant acceleration of Italian productivity or an unexpected French fertility decline, the most likely scenario outlined by the IMF is a progressive widening of the absolute GDP gap even if the per-capita gap narrows slightly through continued labour-market catch-up in Italy.

FAQ

Which economy is larger, France or Italy?

France's economy is larger. In 2024, France's nominal GDP was $3.16 trillion compared with Italy's $2.38 trillion, giving a ratio of 1.33x. The gap reflects both a larger population (68.6 million versus 59.0 million) and higher nominal GDP per capita ($46,145 versus $40,305).

Why is France's GDP per capita higher than Italy's?

France's nominal GDP per capita is about 14% higher ($46,145 versus $40,305 in 2024) due to stronger labour productivity growth over the past two decades, higher labour force participation and a larger share of high-value services. However, in purchasing-power-parity terms the gap shrinks to less than 3% because Italy's cost of living is lower.

Which country has a higher standard of living?

When measured by GDP per capita at purchasing-power parity, the two countries are nearly identical: France's PPP per capita is $63,399 and Italy's is $61,634 in 2024, a difference of 2.9%. This suggests that the average material standard of living — access to goods, housing and services — is very similar, despite the nominal income gap.

Why does Italy have a larger industrial sector than France?

In 2024, industry (including manufacturing, mining and construction) contributed 22.3% of Italy's GDP compared with 17.2% in France. Italy has retained a strong network of small and medium-sized manufacturing firms specialising in machinery, automotive components, fashion and food processing, while France underwent a more pronounced shift toward services. Italy remains one of the world's top manufacturing powers by value added.

Which economy grew faster in 2024?

France recorded real GDP growth of 1.15% in 2024, while Italy grew by 0.71%. The French economy was supported by stronger services expansion and a recovery in nuclear power generation. Italy's lower growth partly reflects the fading of construction-related stimulus and weaker domestic demand.

How have French and Italian unemployment rates compared?

In 2025, Italy's unemployment rate was 6.39%, lower than France's 7.54%. However, Italy's lower rate is partly due to a smaller active labour force — many discouraged workers, especially women and youth, are not counted as unemployed — and a higher incidence of informal work. France has a higher participation rate, meaning a larger share of the population is either working or seeking work.

What are the main exports between the two countries?

Bilateral trade is dominated by intra-industry flows. Italy exports machinery, automotive parts, textiles, food products and pharmaceuticals to France. France supplies Italy with aerospace products, pharmaceuticals, luxury goods and automotive components. The two economies are deeply integrated within European supply chains, particularly through companies such as Stellantis.

How has the GDP gap between France and Italy evolved since 1960?

The gap narrowed dramatically from the 1960s to the 1990s, when the ratio of French to Italian GDP shrank to just 1.08 in 1990. After 1990, the ratio widened again, reaching 1.23 in 2010 and spiking to 1.39 during the pandemic year 2020. As of 2024, the ratio had declined to 1.33, signalling a partial post-pandemic re-alignment.

What role did the EU play in the recent economic convergence between France and Italy?

The European Union's Recovery and Resilience Facility, part of the Next Generation EU package, channelled significant grants and loans to Italy — the largest beneficiary in absolute terms — financing investment in digitalisation, green transition and infrastructure. This fiscal impulse helped Italy to recover faster from the pandemic recession and narrowed the growth differential with France in 2021-2023. EU single market integration and the common currency also continue to bind the two economies closely together.

How do demographics affect the future outlook for France and Italy?

Italy's population has been declining since the mid-2010s and is projected by the UN to fall below 50 million by 2050, while France's population is expected to remain above 67 million. Italy'