Lorenzo Macchi
Research expert covering society, economy, and politics for Italy
Milan - statistics & facts
With 1.37 million inhabitants, Milan is the second-largest Italian city, after Rome and ahead of Naples. It is the country’s economic, commercial, and financial capital. Also, it is the capital of Lombardy, the most populous and richest Italian region. The city not only attracts investments in the finance and fashion sectors, but tourism plays a relevant role in Milan’s economy too. However, its population has progressively aged in recent years, while rising living costs not compensated by higher salaries pushed many residents to relocate in the outskirts searching for more affordable accommodation.
At the beginning of the 20th century, Milan led the industrialization of the peninsula, and over the decades many internationally renowned companies and brands established there. In particular, fashion represents one of the most profitable business sectors, being Milan the third leading city in this industry worldwide. Innovation business is relevant too, as many start-ups and tech companies operate in Milan.
Despite being one of the country’s leading economic areas, a demographic crisis is ongoing. The number of live births has constantly decreased, together with an expansion of the elderly population to the detriment of new generations. A challenge that aging population poses to Milan’s future development is to keep its excellent economic performance facing a lack of young and motivated local workforce, while salaries not adequate to living costs could encourage young talents to move abroad.
From the Middle Ages to the industrial revolution and business innovation
The founding of the city dates to the 6th century BC, before becoming a relevant Roman urban center. During the 13th-16th centuries, the Milan Duchy was ruled by the Visconti and Sforza families, whose domination is still evident in the majestic Sforza’s castle standing out in the city center. In 1559, Milan lost its independence and was ruled by diverse foreign dominations until Victor Emanuel II defeated the Austrians and joined the city to the Kingdom of Italy in 1859.At the beginning of the 20th century, Milan led the industrialization of the peninsula, and over the decades many internationally renowned companies and brands established there. In particular, fashion represents one of the most profitable business sectors, being Milan the third leading city in this industry worldwide. Innovation business is relevant too, as many start-ups and tech companies operate in Milan.
One of the most visited Italian cities
Tourism in Milan plays an essential role. The Duomo (Milan cathedral) is the symbol of the city, and its grandiose square is the center of the metropolis’ social life. In 2022, this sector contributed 7.5 billion euros to the city’s GDP and the number of tourists has always increased since 2010. In 2019, eight million people visited Milan. COVID-19 severely impacted the touristic flow, but after a speedy recovery, accommodation facilities recorded six million guests in 2022, mostly coming from the U.S., France and Germany.Economic growth with an aging population?
The population residing in Milan has slowly decreased in recent years. In fact, many residents decide to relocate outside the municipality to deal with the increasing housing costs that are not offset by proportionate salaries, even though gross earnings in Lombardy are 2,200 euros more than the national average. In the outskirts, residents can find more affordable accommodation prices and an efficient public transportation network allows to commute to the city.Despite being one of the country’s leading economic areas, a demographic crisis is ongoing. The number of live births has constantly decreased, together with an expansion of the elderly population to the detriment of new generations. A challenge that aging population poses to Milan’s future development is to keep its excellent economic performance facing a lack of young and motivated local workforce, while salaries not adequate to living costs could encourage young talents to move abroad.
