Skip to main content

Macroeconomic outlook report: Italy

Second quarter of 2017

During the second quarter of 2017, Italian GDP recorded an acceleration of 0.22 p.p. in its y/y growth rate with respect to the previous quarter, to 1.49%. This behaviour was explained by stronger growth of private consumption, together with an increase in the gross fixed capital formation. The unemployment rate decreased by 0.40 p.p. to 11.2%, while the y/y employment growth rate decelerated by 0.41 p.p. with respect to the previous quarter to reach 0.86%. With respect to the exchange rate, the euro recorded a slight appreciation against the dollar, standing at 1.10 $/€ in the second quarter of the year.

Macroeconomic overview

  • During the second quarter of the year, Italian economy registered an acceleration in its y/y growth rate of 0.22 p.p. compared to the previous quarter, to a growth rate of 1.49%. This behaviour was mainly driven by stronger growth of private consumption, together with an increase in the y/y rate of gross fixed capital formation.
  • Industrial Production Index presented positive values for the third consecutive quarter, registering a y/y growth rate of 0.58%. However, this rate supposes a decrease of 3.31 p.p. compared to the previous quarter.
  • The unemployment rate stood at 11.2% over the total working population in the second quarter, after decreasing by 0.40 p.p. over the previous quarter, a reduction which was especially remarkable in the population aged between 15 and 24. The y/y growth rate of employment stood at 0.86% after decelerating by 0.41 p.p.
  • The euro recorded a slight appreciation against the dollar, with the exchange rate standing at 1.10 $/€ in 2Q17, which means an increase of 0.04 $/€ when compared to 1Q17. This depreciation of the euro against the dollar is caused by the good growth prospects of European economies, as well as the uncertainty around the fiscal policy of the new US government.
  • The Italian Consumer Price Index stood in the second quarter of 2017 at 1.50%, after accelerating by 0.16 p.p. compared to the previous quarter. Higher inflation in this quarter was driven by the acceleration of the growth rate of energy prices, reaching a y/y growth rate of 6.13% in 2Q17.

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

© GMS Management Solutions, S.L., 2018. 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.