Note on Italian economy - January -February 2025

International trade recovered at the end of 2024, but the outlook for global trade is negative, since trade and geopolitical tensions heighten uncertainty.

The GDP growth in the euro area was revised up for the last quarter of the year. However, economic performance in Europe was significantly lower than in other areas, such as the United States and Asian countries.

In 2024, Italy’s GDP grew by 0.7 percent in volume, showing a gradual deceleration during the year.
The seasonally adjusted index of industrial production rebounded strongly in January, showing a cyclical increase of 3.2 percent and offsetting the significant decline registered in December (-2.7 percent).

The business confidence index deteriorated in all sectors except for manufacturing. On the other hand, the consumer confidence index showed an improvement, driven mainly by the assessments of the individual economic situation.

In January employment grew, involving men, women and individuals of all ages, except for people aged 35-49. Employment by occupation rose both for dependent and self-employed workers.

In 2024, while prices rose moderately, there was a strong increase in contractual wages in nominal terms (+3.1 percent). The growth was higher in the private sector (+4.0%).

At the beginning of this year, inflation in Italy, although slightly rising, was lower than the average for the euro area. The harmonized consumer price index showed an increasing trend by 1.7 percent in both January and February.