Italy's Economy Booming, Outpacing Germany on Growth and Stocks

Italy's economy is growing much faster than Germany's. Italy grew 3.8% since 2019 while Germany grew only 0.8%.

Italy's stock market outperformed other European indices in 2022, rising 28%.

Italy's growth is primarily fueled by loose fiscal policy and debt-funded stimulus like the "Superbonus 110" home renovation subsidy.

Italy will receive nearly €200 billion from the EU's COVID recovery fund through 2026.

Critics worry Italy's growth could stall if they don't get debt and deficits under control and implement structural reforms.