The country’s growth slowed to near zero in the final months of last year as consumption stagnated and investment shrank, as credit conditions tightened and energy prices remained high, the central bank estimated in its latest economic bulletin. did.
Manufacturing activity slowed, employment continued to rise, and wage growth remained strong.
Italy’s gross domestic product (GDP) is expected to grow by 0.6% this year and 1.1% in each of the next two years, according to the Bank of Italy. Growth remained close to zero during the final months of last year. Manufacturing activity began to decline. Lower employment levels and slower wage growth are expected to put further pressure on consumers and their spending.
Italian exports increased in the fall. The current account balance in the third quarter of last year was positive thanks to a further reduction in the energy deficit and an increase in the non-energy goods surplus.
Non-resident investors were net buyers of Italian securities, and negative target balances continued to improve. According to the same bulletin, the positive position of international net investment has further strengthened.
The decline in the country’s core inflation intensified and spilled over into non-energy industrial goods and services. The report noted that headline inflation was 0.5% (core inflation was 3%) in December.
The country’s consumer price growth rate will slow to 1.9% this year (5.9% in 2023) and then gradually decline to 1.7% in 2026. Core inflation this year is expected to reach 2.2% (YoY: 2023). 4.5% in 2023), and he is expected to drop below 2% over the next two years.
Lower employment levels and slower wage growth are expected to put further pressure on consumers and their spending.
Fibre2Fashion News Desk (DS)