Italy’s GDP growth in 2023 revised down
2022.12.06 07:01
Italy’s GDP growth in 2023 revised down
Budrigannews.com – Italy’s economy will develop by 0.4% one year from now, public measurements department ISTAT said on Tuesday, slicing a 1.9% projection made in June and advance notice of a few drawback gambles with that could prompt a considerably more honed stoppage.
ISTAT predicted that gross domestic product will rise by 3.9% this year in its twice-yearly economic outlook report. This is a significant increase from its June estimate of 2.8% due to stronger-than-expected growth over the first three quarters.
The most recent projections from the institute are roughly in line with those of Giorgia Meloni’s right-wing government, which predicted growth of 3.7% this year and 0.6% in 2023 a month ago.
According to ISTAT, “the forecast scenario is characterized by downside risks associated with further price increases, a slowdown in international trade, and the persistence of a restrictive monetary policy.”
According to preliminary data released last week, Italian inflation in November was 12.5% based on the EU-harmonised index.
According to ISTAT, growth in the third-largest economy in the euro zone in 2023 will be entirely driven by domestic demand, with trade flows only marginally limiting it.
It estimated that investments, aided by pandemic recovery funds provided by the European Union for infrastructure and other public programs, will be the primary driver both this year and next.
ISTAT’s forecast is one of the more upbeat, despite recent downgrades from a number of forecasters regarding Italy’s economy in 2023.
The OECD anticipates 0.2% GDP growth, while the Employers’ Lobby, Confindustria, sees zero growth next year.
The Fitch rating agency, which has been particularly critical of Italy, increased its 2023 forecast on Monday to -0.1% from -0.7% in October.
According to ISTAT’s report last week, the third largest economy in the Eurozone expanded by 0.5 percent in the third quarter compared to the previous three months. This growth was due to an increase in consumer spending and investments, which overcame a negative impact from trade flows.
The bureau of statistics predicted in its report on Tuesday that this year’s average unemployment rate would be 8.1%, down from 8.4% in June. It confirmed a 2023 forecast of 8.2%.
ISTAT reported last week that the unemployment rate was 7.8% in October, which was slightly lower than the 7.9% rate the month before.
