Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bank of Italy trims Italy 2022 growth forecast as downside risks increase

Published 21/01/2022, 14:29
Updated 21/01/2022, 14:32
© Reuters.

© Reuters.

ROME (Reuters) - Italy's economy will grow by 3.8% this year, the Bank of Italy forecast on Friday, lowering a projection of 4.0% made just one month ago as a recent surge in coronavirus infections clouds the outlook.

The central bank said gross domestic product in the euro zone's third largest economy probably rose by around 0.5% in the fourth quarter of last year from the previous three months, slowing sharply from the third quarter rate of 2.6%.

"Growth prospects are subject to numerous risks, mainly to the downside," the central bank said in its quarterly forecasting bulletin, noting that the worsening COVID-19 situation had hurt consumer confidence.

The bank left its forecast for 2021 growth unchanged at 6.3%, following the record contraction of 8.9% in 2020, and said GDP would return to its pre-pandemic level around the middle of this year.

© Reuters. FILE PHOTO: The Bank of Italy building is seen downtown Milan, November 25, 2011. REUTERS/Stefano Rellandini

Turning to prices, the bulletin forecast that Italy's EU-harmonised consumer price inflation rate would average 3.5% this year, slowing to 1.6% in 2023.

The employment situation in Italy is seen improving only marginally. The bulletin forecast the average jobless rate will fall from 9.4% last year to 9.0% in 2022 and 8.9% in 2023.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.