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Macroeconomic outlook report: Italy

Second quarter of 2019

During the second quarter of 2019, Italian GDP decelerated by 0.05 p.p. its year-over-year growth rate, to 0.07%. This performance was mainly due to lower growth in domestic demand, which decelerated by 0.09 p.p. to 0.75%. In the labor market, the unemployment rate fell compared to the first quarter of 2019 to 9.93 %, while the year-over-year rate of employment creation slowed by 0.06 p.p. to 0.52%. With regard to the exchange rate, the euro depreciated against the US dollar compared to the previous quarter, recording an average exchange rate of 1.13 $/€ during the first quarter of the year. Finally, inflation decelerated to 0.85%.

Macroeconomic overview

  • During the second quarter of the year, the Italian economy recorded a deceleration in its year-over-year GDP growth rate of 0.05 p.p. with respect to the previous quarter, to 0.07%. This performance was mainly due to lower growth in domestic demand, which decreased by 0.09 p.p. to 0.75%, especially due to the deceleration in public spending and investment.
  • In the labor market, the unemployment rate fell by 0.41 p.p. from the previous quarter to 9.93%. The year-over-year growth rate of employment was 0.52%, decelerating by 0.06 p.p. from the previous quarter.
  • The euro depreciated against the US dollar, reaching an exchange rate of 1.13 $/€, when compared to the exchange rate than the registered in 1Q19.
  • Inflation stood at 0.85% in the second quarter of 2019, slowing by 0.10 p.p. from the previous quarter.

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© GMS Management Solutions, S.L., 2020. 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.