During the fourth quarter of 2021, the variation of Italian GDP continued in positive figures with a rate of 6.20%, following an acceleration compared to last quarter. As for the labour market, the unemployment rate stood at 9.10%, while the year-on-year rate of job creation stood at 0.83%. Regarding the exchange rate, the euro experienced a depreciation against the US dollar compared to the previous quarter, registering an average exchange rate of 1.14 $/€ during the fourth quarter of the year. Finally, inflation increased compared to the previous quarter up to a rate of 3.37%.


Macroeconomic outlook report: Italy 4Q21

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Macroeconomic overview

  • During the fourth quarter of 2021, Italy's GDP recorded a year-on-year rate of change of 6.20%, increasing by 2.25 p.p. compared to the previous quarter. This rate remained positive due to the wide vaccination coverage, but growth was dampened by the increase in infections due to the Omicron variant which dented consumer confidence.
  • Regarding the labor market, the unemployment rate decreased by 0.15 p.p. compared to the previous quarter, standing at 9.10%. On the other hand, employment in Italy continued to register a positive year-on-year variation rate of 0.83%, although it was half the value recorded in the previous quarter.
  • The euro depreciated against the US dollar during the fourth quarter, recording an average exchange rate of 1.14 $/€, four cents less per euro compared to 3Q21.
  • As for the price index, inflation registered a year-on-year growth rate of 3.37%, after increasing by 1.19 p.p. compared to the third quarter of 2021.

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