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Macroeconomic outlook report: Italy

First quarter of 2020

During the first quarter of 2020, Italy's GDP recorded a substantial decrease in its year-on-year growth rate when compared to the previous quarter, registering a -5.45% contraction. Regarding the labor market, the unemployment rate fell compared to the fourth quarter of 2019, down to 8.91%, while the year-on-year rate of job creation decreased to -0.21%. With regards to the exchange rate, the euro depreciated against the US dollar when compared to the previous quarter, recording an average exchange rate of 1.10 $/€ during the first quarter of the year. Finally, inflation remained constant at 0.29%.

Macroeconomic overview

  • During the first quarter of 2020, Italy's GDP year-on-year growth rate decreased when compared to the previous quarter, down to a -5.45% rate. This performance was due to the strong containment measures carried out worldwide to prevent the spread of the Covid-19 virus, which seriously affected both domestic and external demand.
  • In the labor market, the unemployment rate fell by 0.59 percentage points when compared to the previous quarter, down to 8.91%. The year-on-year employment growth rate stood at -0.21%, decreasing by 0.73 percentage points when compared to the previous quarter.
  • The euro depreciated against the US dollar compared to the previous quarter, recording an average exchange rate of 1.10 $/€.

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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.