Monthly report on Italian economy no

The international environment remains characterised by high uncertainty and risks tilted to the downside. The decelerating inflation pattern is likely to be longer than initially expected.

Italian GDP in the fourth quarter 2022 decreased marginally with respect to the previous period. This result was determined by net exports positive contribution offsets by the negative one of domestic demand excluding inventories.

On the supply side, in January industrial production index, after a strong rise the previous month, decreased by 0.7% with respect to December.

Labour market conditions improved further in January. Full time employees are now above the 2019 average, while self-employed workers are still below pre-pandemic levels.

Italian harmonised index of consumer prices (HICP) increased by 9.9% on annual basis. The differential with the euro area, although still positive, diminished.

Perspective for Italian economy remains mildly positive. In February, the consumer confidence increased with improvements diffused to all index components, while the business confidence, after three rises in a row, remained stable.