Ambitious export target. The Italian government has set an ambitious goal to reach a €700 billion trade surplus by 2027, up from the current €650 billion.
- This target is enshrined in the “Action Plan for Export in Non-EU Markets with High Potential,” which the Ministry of Foreign Affairs will present on Friday.
- According to anticipations from MF-Milano Finanza, the plan envisages “a cross-sector promotional initiative across all priority export areas.”
- The document was jointly developed by the Ministry of Foreign Affairs, ICE, Simest, SACE, and Cassa Depositi e Prestiti.
- ICE is Italy’s trade and investment promotion agency; Simest supports Italian exports and investments abroad; SACE is the state export credit agency; and Cassa Depositi e Prestiti is Italy’s state investment bank.
Italy’s export leverage. Exports play a strategic role in Italy’s economy—they propelled the country to fourth place globally in 2024 despite not being the fourth-largest economy and even having the third-highest public debt in the world.
- Key priorities to reach the €700 billion target include boosting exports to Africa, which exceeded €20 billion in 2024, and increasing exports to the Western Balkans and Southeast Asia, which grew by 13.4% and 10.3%, respectively, compared to 2023.
- In contrast, Italian imports from the USA contracted by 3.6% in 2024 (totalling €64.7 billion), mainly due to geopolitical complexities and uncertainties related to tariff access in the US market.
Expanding global markets. Italian export performance in emerging non-EU markets has shown remarkable progress.
- Exports to Turkey surged by 23.9%, reaching €17.6 billion, while those to Saudi Arabia rose by 27.9% to €6.2 billion in 2024.
- The United Arab Emirates and Mexico also stand out, with exports reaching €7.9 billion (+19.4%) and €6.6 billion (+7.4%) respectively.
- The Ministry of Foreign Affairs has identified further potential in Brazil (€5.8 billion, +8.18% over 2023) and India (€5.2 billion, +1%), where negotiations are ongoing for the revision of the EU-Mercosur agreement and a new EU-India Free Trade Agreement.
- In contrast, exports to China fell by 20% in 2023, though they amounted to €15.3 billion, accounting for 2.5% of Italy’s total trade.
Sectoral priorities. According to the action plan prepared by the Ministry of Foreign Affairs, the key sectors Italian companies should focus on include machinery and advanced mechanics, agro-food products, transport and sustainable mobility, and chemical products.
- The plan calls for a coordinated effort between the Ministry and the agencies of Sistema Italia to facilitate dialogue among Italian companies, local operators, and foreign counterparts.
- Increased trade fair activities and agreements with major retail and e-commerce players are essential to ease Italian market entry abroad.
- A strong financial support framework is also crucial: dedicated instruments for facilitated finance, public guarantees, and specific funding ceilings will be implemented to incentivise investments and support Italian companies’ expansion in emerging markets.
