During the third quarter of 2020, regarding Italy's y/y GDP variation rate, even though it registered a considerable increase compared to the previous quarter, it continued register a negative rate and stood at -5.01%. Regarding the labor market, the unemployment rate increased compared to the previous quarter, reaching a rate of 9.83%, while the y/y employment growth rate stood a rate of -2.36%. As for the exchange rate, the euro appreciated against the U.S. dollar compared to the previous quarter and stood at an average exchange rate of 1.17 $/€ during the third quarter of the year. On the other hand, CPI inflation decreased down to a rate of -0.48%.

 


Macroeconomic outlook report: Italy 3Q20

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Macroeconomic overview

  • During the third quarter of 2020, regarding Italy's y/y GDP variation rate, even though it registered a considerable increase of 13.00 p.p. compared to the previous quarter, it continued register a negative rate and stood at -5.01%. Due to the easing of some of the containment measures, consumption, investment and exports recorded a gradual reactivation, driving the partial recovery of the Italian economy in 3Q20.
  • Concerning the labor market, the unemployment rate increased by 1.39 p.p. compared to the previous quarter, up to a rate of 9.83%. The y/y employment variation rate stood at -2.36%, despite recording an increase of 0.44 p.p. compared to the second quarter of 2020.
  • The euro appreciated against the U.S. dollar compared to the previous quarter, with an average exchange rate of 1.17 $/€, which was 0.07 dollars per euro higher than in 2Q20.
  • The Italian Consumer Price Index decreased by 0.35 p.p. compared to the previous quarter, down to a negative rate of -0.48%.

For more information, click here to access the executive document in pdf.