Italy ageing faster than EU peers, population drops below 59 million

Italy's population has dropped below 59 million and the country is ageing at a much faster rate than its European Union peers, national statistical agency Istat said on Monday.

A shrinking and ageing population is a major worry for a stagnant economy like Italy as it is linked to falling productivity, less innovation and higher welfare bills among other things.

"As of 1 January 2022 according to first preliminary data, the (resident) population has fallen to 58.983 million," Istat president Giancarlo Blangiardo said in a parliamentary hearing in Rome.

Blangiardo, a renowned demography expert, said the national population has been shrinking steadily since 2014, with a cumulative loss since then of more than 1.36 million residents.

"Our country's demographic outlook is characterised by a significant growth in life expectancy and by an equally marked fall of the birth rate, resulting in a much faster ageing of the population compared to the rest of Europe," he said.

In September, Istat predicted that Italy could lose almost a fifth of its residents, with the population set to decline, under a baseline scenario, from 59.2 million in 2021 to 54.2 million in 2050 and 47.7 million in 2070.

Inverting that trend and supporting families is a stated priority for Prime Minister Giorgia Meloni's new right-wing government. In its 2023 budget, it proposed cutting sales taxes on baby-care products and raising child benefits.