Italy’s credit profile is underpinned by large economic size and consistent surplus in its current account balance, aided by strong exports growth. Also, Italy benefits from being a part of European monetary union and is one of the largest recipients of funding support from European Union through National Recovery and Resilience Plan (NRRP). However, these positives are somewhat offset by Italy’s low economic growth, high government debt, and lack of reforms. Moreover, not only rapidly ageing population but also shrinking working age population is a key concern for future growth outlook.