Bank of Italy and Istat publish wealth accounts showing Italian households net wealth at EUR 11,286 billion in 2023

The Bank of Italy and Istat have released their joint annual publication, “The wealth of Italy’s institutional sectors: 2005-2023”, providing time series on the financial and non-financial wealth of Italy’s institutional sectors and comparisons with other advanced economies. It reports that, at end-2023, Italian households’ net wealth stood at EUR 11,286 billion, up 4.5% in nominal terms from 2022 but still more than 7 percentage points lower in real terms than in 2021 due to the high inflation recorded in 2022. Households’ non-financial assets rose 1.6% in nominal terms, driven mainly by higher dwelling values, while financial assets increased 7.1% on higher market prices for shares, mutual fund units and insurance reserves; households also increased investment in debt securities, mainly general government issues, and deposits fell 3.2%, the largest decline since 2005. Non-financial corporations’ net wealth was broadly unchanged, with machinery and equipment (56.8% of gross wealth) continuing to rise, share values increasing, deposits falling for the first time since 2012, and higher equity values offsetting a decline in loans; the publication also notes a slight fall in corporate indebtedness in Italy. Financial corporations’ balance sheets contracted by around 3% on both assets and liabilities, reflecting lower deposits and loans on the asset side and reduced deposit funding on the liability side partly offset by higher share values, while general government net wealth was negative at EUR 1,432 billion and worsened as liabilities rose 8.8% against a 0.9% increase in gross wealth.