During the fourth quarter of 2020, Italy's y/y GDP variation rate registered a decrease compared to the previous quarter, down to -6.58%. Regarding the labor market, the unemployment rate decreased compared to the previous quarter, down to a rate of 9.20%, while the y/y employment growth rate stood a rate of -1.87%. 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 $1.19/€ during the fourth quarter of the year. On the other hand, CPI inflation increased up to a rate of -0.23%.

 


Macroeconomic outlook report: Italy 4Q20

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Macroeconomic overview

  • During the fourth quarter of 2020, the Italian economy recorded a GDP annual growth rate of -6.58%, decelerating 1.42 p.p. compared with the previous quarter, after the reintroduction of containment measures motivated by the resurgence of the pandemic which particularly affected the service sector.
  • Concerning the labor market, the unemployment rate decreased by 0.63 p.p. compared to the previous quarter, down to a rate of 9.20%. The y/y employment variation rate stood at -1.87%, despite recording an increase of 0.51 p.p. compared to the third quarter of 2020.
  • The euro appreciated against the U.S. dollar compared to the previous quarter, with an average exchange rate of 1.19 $/€ which was 0.02 dollars per euro higher than in 3Q20.
  • The Italian Consumer Price Index increased by 0.26 p.p. compared to the previous quarter, up to a rate of -0.23%.

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