Despite a strong economic rebound in Italy following the easing of COVID-related restrictions, the number of people living in poverty has reached its highest level in about a decade. Data from the national statistics bureau ISTAT revealed that those living in "absolute poverty," unable to afford essential goods and services, increased to 5.75 million, accounting for 9.8% of the population. This marks a slight rise from the previous year's 9.7% and represents the highest level since 2014 when the current data series began.
Italy's economic recovery outpaced that of its neighbors, including Germany and France, leading to a rise in employment. However, the benefits of this economic upturn have not trickled down to the country's poorest citizens. Despite the positive economic indicators, the percentage of those living in absolute poverty has remained stubbornly high, standing at 9.1% in 2020 and 9.0% in 2021 during the height of the pandemic.
ISTAT defines absolute poverty as the inability to afford goods and services necessary for an acceptable standard of living that prevents individuals from being marginalized in society. The trend of increasing poverty has been persistent, with figures rising steadily from 6.9% in 2014.
In response to the growing poverty levels, the right-wing government led by Giorgia Meloni began phasing out the "citizens' income" poverty-relief subsidy introduced in 2019. Despite warnings from economists and the Bank of Italy regarding the impact on the poor, the scheme was completely scrapped at the beginning of this year. It was replaced by a limited subsidy primarily targeting individuals physically incapable of working.
Regional breakdowns of poverty levels show disparities, with the south of Italy historically experiencing higher poverty rates compared to the north and centre. While poverty levels increased in the north and centre in 2023, there was a decrease in the south according to the latest ISTAT data. The challenges of poverty in Italy persist, highlighting the need for comprehensive and sustainable measures to address this concerning trend.