The «contraction of manufacturing» and the «more contained» rhythms of consumption weigh
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Italy’s economic growth, «after the rebound in the first quarter», was «interrupted», and the GDP «remained almost unchanged in the spring». This is what the Bank of Italy estimates in its economic bulletin, which updates last month’s forecasts. However, growth this year is expected to be 1.3%, while in 2024 and 2025 it will be limited to 0.9 and 1% respectively. The slowdown was caused by the “contraction of manufacturing” and the “lower” pace of consumption.
Strong slowdown in inflation only from 2024
Inflation in Italy should see a sharp slowdown only in 2024, according to the Bank of Italy, remaining high this year. As stated in the economic bulletin, “inflation would rise to 6% on average this year, and would drop to 2.3% in 2024 and 2.0% in 2025”. At the basis of the decline, «the direct and indirect effects of the drop in the prices of energy raw materials. Core inflation, expected at 4.5 per cent on average for the current year, would reach 2.0 per cent at the end of the three-year forecast period».