Houthi attacks, diverted ships and skyrocketing prices: Italy loses half a point of GDP
Trouble ahead for Giorgia Meloni who risks a weaker GDP, a major obstacle on the way to drawing up the next Budget. The dangers, explains Repubblica, “are linked to the delays due to the need, for many shipowners, to divert the routes towards the Mediterranean by circumnavigating Africa, after the Houthi attacks in the Strait of Bab el-Mandeb increased the risks for the transit of ships in the Red Sea. Approximately 8-12 days of additional navigation: late deliveries and higher costs”.
Result: GDP could grow by up to 0.2% this year less due to the impact that the increase in the price of imports could have due to the higher freight costs due to the recent tensions in the Red Sea. It is the worst scenario, in which a more severe shock is imagined, in the analysis contained in the Economic and Financial Document. And another specter yes call oil price, at risk of experiencing a net increase.
As Repubblica explains, “the negative trail would extend into next year, with a negative effect of 0.3% which would reduce the optimistic estimate of 1.2%, bringing it to 0.9%. Translated into money: four billion in growth would be burned this year, six in 2025.”