FX.co ★ Italy’s Trade Deficit with EU Narrows in January 2026

Italy’s trade balance with European Union partners showed a notable improvement at the start of 2026, with the deficit narrowing to €1.14 billion in January 2026 from €2.45 billion in December 2025. The latest figures, updated on 20 March 2026, indicate a reduced shortfall in trade flows between Italy and the EU.

While the balance remains in negative territory, the near-halving of the deficit suggests either firmer export performance, a moderation in imports, or a combination of both compared with the previous month. Market participants and policymakers will be watching subsequent releases to assess whether January’s data marks the beginning of a sustained adjustment in Italy’s trade position within the European bloc or a temporary correction following December’s wider gap.