by InTrieste
Italy has quietly achieved a milestone that would have seemed unlikely a decade ago: it has overtaken Japan to become the world’s fourth-largest exporter, ranking behind only China, the United States and Germany.
The shift, reported by Les Echos and confirmed by data from the Organization for Economic Cooperation and Development and the World Trade Organization, reflects a steady rise rather than a sudden jump. Using seasonally adjusted figures in current dollars, Italian exports surpassed those of Japan by the third quarter of 2025, consolidating a trend that had already emerged the previous year.
Ten years ago, Italy ranked seventh globally. Since then, it has posted one of the strongest export performances among advanced industrial economies. Exports now account for roughly 40 percent of Italy’s gross domestic product, underscoring how central foreign demand has become to the country’s economic model.
The advance has also reshaped Italy’s standing within Europe. It is now the second-largest exporter in the European Union, behind Germany, reinforcing its role as a major manufacturing and trading power at a time when the bloc is seeking greater economic resilience.
Analysts point to Italy’s distinctive industrial structure as a key driver of this performance. The economy is anchored by thousands of small and medium-sized enterprises, often organized in specialized industrial districts, that produce high-value goods for global markets. These firms operate across a broad range of sectors — including machinery, pharmaceuticals, automotive components, food products, fashion and design — and combine local roots with international reach.
Unlike economies dominated by a few large conglomerates, Italy’s export engine is highly diversified. Many companies occupy niche positions, supplying specialized products that are less vulnerable to price competition. This flexibility has helped Italian exporters adapt to shifting demand and supply-chain disruptions over the past decade.
Geographic diversification has also played a role. While Europe remains Italy’s largest export market, companies have expanded more aggressively into North America, Asia and emerging economies. That broader footprint has helped offset slowdowns in individual regions and reduced reliance on any single market.
The overtaking of Japan carries symbolic weight. Japan has a much larger population and a long-established industrial base, and has long been viewed as a benchmark among export-oriented economies. Italy’s rise highlights the continued global appeal of the “Made in Italy” brand and the ability of a medium-sized country to compete at the highest levels of international trade.
The achievement, however, comes with clear limitations. A heavy dependence on exports leaves Italy more exposed to global economic shocks, geopolitical tensions and fluctuations in international demand. At home, domestic consumption remains relatively subdued in parts of the economy, and long-standing structural challenges persist.
Productivity growth has lagged that of some peers, while demographic pressures — including an aging population and low birth rates — weigh on long-term prospects. High energy costs and uneven infrastructure also pose constraints for manufacturers, particularly as Europe navigates the transition toward greener production.
Even so, economists describe Italy’s new ranking as a turning point. In an era marked by trade fragmentation and economic uncertainty, the country’s export performance illustrates how a diversified industrial base built around specialized, high-quality production can deliver resilience and global relevance.
