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Macroeconomic outlook report: Italy

First quarter of 2018

During the first quarter of 2018, Italy's GDP experienced a deceleration of 0.23 p.p. in its year-over-year growth rate when compared to the previous quarter, registering a rate of 1.38%. The y/y growth rate of Industrial Production Index decelerated by 0.49 p.p. to 2.71%. In the labour market, the unemployment rate fell when compared to the fourth quarter of 2017, to 10.98%, while the year-over-year rate of employment creation slowed by 0.46 p.p. to a rate of 0.61%. The euro appreciated against the dollar, recording an exchange rate of 1.23 $/€. Finally, inflation stood at 0.73%.

Macroeconomic overview

  • During the first quarter of the year, the Italian economy registered a deceleration in its year-over-year growth rate of 0.23 p.p. compared to the previous quarter, to 1.38%. This behavior was mainly due to the deceleration of domestic demand, due to the decrease in the growth of both households and public consumption.
  • In the labour market, the unemployment rate fell by 0.05 p.p. from the previous quarter, to 10.98%. The year-over-year growth rate of employment was 0.61%, decelerating by 0.46 p.p. with respect to the previous quarter.
  • The euro appreciated against the US dollar by 0.05 dollars per euro in the first quarter of 2018, recording an exchange rate of 1.23 $/€. This appreciation was due to the economic situation in the Eurozone, based on sustainable growth, low inflation and the behaviour of the external sector.
  • Inflation stood at 0.73% in the first quarter of 2018, decelerating by 0.20 p.p. from the previous quarter, mainly due to the slowdown in the price of energy and unprocessed food.

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

© GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.