How will the FDI landscape evolve over the next five years in Italy?

The improved general economic climate and conditions of the European and Italian financial markets has helped to strengthen the confidence of Italian business operators and the interest of foreign investors in Italy.

After some years of weak economy and credit crunch, the Italian economy is now strengthening, although public investment has not yet recovered and Italy’s integration in the global value chains remains limited. Italy’s economy is projected to grow by 1.3 per cent in 2017 and by between 1.3 – 1.5 per cent in 2018.

The main factors contributing to the slight and slow business investment recovery has been the extension of tax incentives enacted by the Italian government in the recent years as well as the more accommodative monetary policy stance that resulted in the provision of persistently low interest rates.

In the years to come, we expect an increase of foreign investors acquiring Italian companies or brands or knowhow
or lines of businesses. In particular, we see a tendency by the elite mid-size Italian companies to start using capital markets financing to accelerate their growth domestically and internationally. We expect an increase in use of private debt as well as private equity financing.

We also believe that elite mid-size companies will, in the future, increase their recourse to public listing at the Italian stock exchange as a mean of raising finance in order to accelerate their domestic and international growth and visibility.

With the Italian government political elections expected to be called in early 2018, it is very hard to predict how much Italian economy will grow in the forthcoming years.