Istat, household purchasing power rises (+0.9%)
In the first quarter, the tax burden rose by half a point (to 37.3 per cent) due to the increase in revenue from taxes on pension funds
2' min read
2' min read
Household purchasing power is confirmed on a growth path in Q1 2025 that started in Q1 2023 and was only interrupted during the last quarter of 2024. In the same timeframe, the data show a slight increase in the propensity to save, estimated at relatively high levels compared to the average of the last three years. According to ISTAT, the disposable income of consumer households rose by 1.8% compared to the previous quarter in nominal terms, consumption grew by 1.2%. The propensity to save is estimated at 9.3%, up 0.6 percentage points. The purchasing power of households increased compared to the previous quarter by 0.9%, discounting a 0.9% increase in prices.
Deficit worsens in the first quarter, to 8.5% of GDP
In the first quarter of 2025, the public finance framework shows a higher indebtedness than in the same period of the previous year, due to a more pronounced growth in expenditure than in revenue. According to ISTAT data, in the first three months of this year, general government net borrowing as a ratio of GDP is estimated at -8.5 % (-8.2 % in the same quarter of 2024). The general government primary balance (debt net of interest expenses) was negative, with a ratio to GDP of -4.7 per cent (-4.8 per cent in the first quarter of 2024).
Tax burden at 37.3 per cent: up half a point: this is the effect of increased revenue from pension fund taxes
The tax burden rose in the first quarter of the year. This was calculated by Istat in its quarterly counter-quarterly estimates for the public administration, according to which it was 37.3%, up 0.5 percentage points compared to the same period last year. The tax burden in the quarter rose due to the increase in revenue from taxes on pension funds.
New drop in profits for companies in the first quarter
In the first quarter of this year, Italian companies experienced a further fall in their profit share, which, albeit slight, follows seven quarters of economic decline. ISTAT reports that the profit share of non-financial companies is estimated at 42.1%, down 0.2 percentage points from the previous quarter. The investment rate of non-financial companies stood at 22.4%, up 0.2 percentage points from the previous quarter.
