Italy

Italy's demographic crisis is the most severe among Europe's large economies, with a population of 58.9 million shrinking at 0.3% annually—worse than #6 Spain's 0.1% decline. Over 23% of Italians are aged 65 or older, the second-highest proportion in the EU. The fertility rate stands at 1.2 children per woman, far below the replacement level of 2.1, and 0.3 lower than the average for Southern Europe. This aging trajectory, despite covering 301,336 square kilometers of Mediterranean land, threatens future workforce stability with no policy reversal in sight.