42 | Panel Perspectives: Italian wood and panels overview
ITALIAN ECONOMIC UPDATE
The Italian Federation of Woodworking and Furniture industries provides WBPI with a broad economic snapshot of the Italian economy, and the wood, furniture and panels sectors
A
ccording to the latest Istat (Italian Statistics Institute) data, in 2024 the
Italian economy recorded a GDP growth of +0.7% (in line with that of 2023), thanks to both domestic demand net of inventories (+0.5%) and foreign demand (+0.4%); the change in inventories was slightly negative (-0.2%). Istat adds that “on the supply side of goods and services, added value grew in agriculture (+2.0%), services (+0.6%) and, to a lesser extent, industry (+0.2%). The growth in production was
accompanied by an expansion in labour input and income. The ratio of public administration debt to GDP improved significantly compared to 2023, standing at -3.4%. The primary balance improved from -3.6% to +0.4%. The tax burden increased by more than one percentage point. Interest expenditure increased by 9.5%. The forecasts for the two-year period 2025-2026, formulated by the National Institute of Statistics in June 2025, are for Italian GDP growth in both years, respectively +0.6 and +0.8 per cent: the increase “would be entirely supported by domestic demand net of inventories (+0.8 and +0.9 percentage points respectively), while net foreign demand would make a
negative contribution in both years (-0.2 and -0.1 p.p.). The forecast scenario for net foreign demand assumes that the climate of uncertainty surrounding US trade policy will ease in the second half of 2025. However, tariffs are expected to have a negative impact on world trade and international growth prospects”.
GENERAL TREND IN CONSTRUCTION Investments in construction, as stated by ANCE (National Association of Building Contractors), “have been the main driver of growth for the Italian economy in the three- year period 2021-2023”. This performance “is supported by two important drivers of development: tax incentives for the redevelopment of real estate assets and the PNRR (National Recovery and Resilience Plan), which is expected to be completed in 2026”. For 2024, ANCE has estimated
Above: The FLA incorporates more than 2,000 members
investments in construction in Italy to be worth €223.5bn, with a contraction of 5.3% that “reflects opposing dynamics in the residential and non-residential sectors” : in fact, this figure,“which confirms, albeit with a slight improvement, the negative forecast released a year ago, is affected by the significant decline in extraordinary housing maintenance. On the other hand, as mentioned, it highlights the continued excellent performance of public works, driven by the implementation of PNRR project.” As for 2025, initial estimates indicate a further contraction of the same magnitude (-5.2% in value), corresponding to -7.0% in quantity. According to ANCE, “although this result still indicates a fairly high level of investment, it is strongly influenced by the reduction in the positive impact of extraordinary housing maintenance. In fact, the latter is estimated to decline significantly, by -30.0%, as a direct consequence of the further restructuring of tax rates. From 1st January 2025, these tax breaks will fall to 50% for home renovation work on primary residences and to 36% for second homes. However, the estimated decline may be considered optimistic, as it assumes that households
WBPI | December 2025/January 2026 |
www.wbpionline.com
have now developed a sensitivity to issues of sustainability and energy efficiency that may prompt them to invest more than in the past in measures to reduce energy costs.” While investments in the residential
sector accounted for more than half of total construction investments in the three-year period 2021-2023, in 2024 the contraction estimated by Ance for extraordinary residential maintenance, combined with the growth of both public and private non-residential construction, is reflected in an increase in the share of investments in non-residential construction. Residential construction accounted for 48% of the total in 2024, while the estimate for 2025 is for a further decline to 39%. Despite recording a decline both in
absolute terms and in relation to total residential construction, in 2024 investments in extraordinary maintenance accounted for 85% of the housing segment. A further decline is expected for the current year. After a 9.7% contraction in 2023 compared
to 2022, the data for 2024 released by the Italian Tax Agency indicate a modest increase (+1.3%) in sales compared to the previous year. The overall change is limited by the negative first quarter, while the following three quarters all show a positive trend, particularly the last (+7.6%). However, the data remains well above pre-
Covid levels.
At a regional level, the trend is better in the North-East, Centre and South; the trend is more modest in the North-West (where the negative trend in the city of Milan is particularly noteworthy) and the Islands. For 2025, Nomisma forecasts a further increase in sales, which would reach around 776,000 units and then stabilise at building permits.
Building permits are a forward-looking
indicator that provides information on how many buildings will be completed in the coming years and their main characteristics. Every year, Istat publishes the number of building permits issued for: • new builldings and related homes; • new homes in extensions to existing buildings.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53
