During the first quarter of 2022, the variation of Italian GDP continued in positive figures with a rate of 6.25%, following a deceleration compared to last quarter. As for the labour market, the unemployment rate stood at 8.60%, while the year-on-year rate of job creation stood at 3.07%. Regarding the exchange rate, the euro experienced a depreciation against the US dollar compared to the previous quarter, registering an average exchange rate of 1.12 $/€ during the first quarter of the year. Finally, inflation increased compared to the previous quarter up to a rate of 5.67%.

Macroeconomic outlook report: Italy 1Q22

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Macroeconomic overview

  • During the first quarter of 2022, Italy's GDP recorded a year-on-year rate of change of 6.25%, decreasing by 0.11 p.p. compared to the previous quarter. This rate decreased due to the increase in infections due to the Omicron variant and to the dynamics in energy prices, that dampened consumer confidence.
  • Regarding the labor market, the unemployment rate decreased by 0.50 p.p. compared to the previous quarter, standing at 8.60%. Moreover, employment in Italy continued to register a positive year-on-year variation rate of 3.07%, and it was more than three times the value recorded in the previous quarter.
  • The euro depreciated against the US dollar during the first quarter, recording an average exchange rate of 1.12 $/€, two cents less per euro compared to 4Q21.
  • As for the price index, inflation registered a year-on-year growth rate of 5.67%, after increasing by 2.30 p.p. compared to the fourth quarter of 2021.

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