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Macroeconomic outlook report: Italy

Fourth quarter of 2017

During the fourth quarter of 2017, the Italian economy recorded a deceleration of 0.13 p.p. in its year-over-year growth rate in comparison with the previous quarter, standing at 1.61%. The y/y growth rate of Industrial Production Index decelerated 0.13 p.p. to 2.62%. Regarding the labor market, the unemployment rate went down compared to the third quarter of 2017, reaching 11.08%, and the year-over-year growth rate of employment decelerated 0.16 p.p., standing at 1.07%. The euro appreciated against the US dollar, registering an exchange rate of 1.18 $/€. Lastly, the inflation stood at 0.93%.

Macroeconomic overview

  • During the fourth quarter of the year, the Italian economy registered a deceleration in the year-over-year growth rate of GDP of 0.13 p.p. when compared to the previous quarter, down to a rate of 1.61%. This behavior was mainly driven by decelerations in household and government consumption and gross fixed capital formation. In annual terms, the Italian GDP growth rate stood at 1.55% in 2017, accelerating by 0.58 p.p. in comparison with the previous year.
  • As for the labor market, the unemployment rate went down by 0.14 p.p. to a rate of 11.08%. The year-over-year growth rate of employment reached 1.07%, decelerating 0.16 p.p. when compared to the third quarter.
  • The euro appreciated against the US dollar in 0.01 dollars per euro during the last quarter of 2017, registering an exchange rate of 1.18 $/€. This appreciation was due to the improved expectations of economic growth for countries in the Eurozone, together with the increasing uncertainty surrounding upcoming fiscal policies from the US government.
  • The inflation stood at 0.93% in the fourth quarter of 2017, decelerating 0.20 p.p. compared to the previous quarter, mainly due to the deceleration in the price of services

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