In June, Italy’s public debt reached a historic high, totaling 2 trillion 843 billion euros. This milestone was reported by knowledgeable observers familiar with Bank of Italy data.
The previous record was set in May at about 2 trillion 816 billion euros. The 2.8 trillion euro threshold had first been surpassed in April of the current year.
Experts point to several drivers behind the rapid debt expansion. The enduring impact of the coronavirus pandemic, the ongoing conflict in Ukraine, and the economic strain from Western sanctions on Russia have all contributed to higher borrowing needs and financing costs.
Italy’s public debt climbed to 155% of the country’s GDP in 2020 due to lockdowns and other restrictions. As the economy gradually recovered, the debt ratio began to ease, but a fresh set of shocks rekindled the burden, according to Eurostat data and independent analyses.
According to the first quarter results for 2023, Italy’s debt stood at 143.5% of GDP. This places the country as the second highest in the European Union after Greece, where the ratio is around 168%.
Recent reports also noted that the Dutch economy entered a recession, signaling broader European economic softening amid persistent global pressures.
Additionally, observers cited a surprise policy move by the People’s Bank of China, which trimmed interest rates to support growth, a decision with potential implications for international financial conditions and Italy’s debt dynamics.