During the first quarter of 2021, Italy's y/y GDP variation rate registered an increase compared to the previous quarter, up to -0.76%. Regarding the labor market, the unemployment rate increased compared to the previous quarter, up to a rate of 10.40%, while the y/y employment growth rate stood a rate of -4.13%. 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 $1.21/€ during the first quarter of the year. On the other hand, CPI inflation increased up to a rate of 0.58%.

 

 


Macroeconomic outlook report: Italy 1Q21

Watch video

Macroeconomic overview

  • During the first quarter of 2021, the Italian economy recorded a GDP annual growth rate of -0.76%, accelerating 5.78 p.p. compared with the previous quarter, driven by the intensification of the vaccination campaign and the gradual relaxation of restrictions.
  • Concerning the labor market, the unemployment rate increased by 1.22 p.p. compared to the previous quarter, up to a rate of 10.40%. The y/y employment variation rate stood at -4.13%, recording a decrease of 2.27 p.p. compared to the fourth quarter of 2020.
  • The euro appreciated against the U.S. dollar compared to the previous quarter, with an average exchange rate of 1.21 $/€ which was 0.02 dollars per euro higher than in 4Q20.
  • The Italian Consumer Price Index increased by 0.81 p.p. compared to the previous quarter, up to a rate of 0.58%.

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