Italian Economy Expected to Slow Sharply in 2023 as Inflation Takes Toll
By Xavier Fontdegloria
Italy's economy is expected to decelerate sharply in 2023 due to
high inflation, slowing international trade flows and a tighter
monetary policy, according to forecasts from the country's national
statistics agency Istat released Tuesday.
The eurozone's third-largest economy is set to grow by 0.4% in
2023, down sharply from an expected 3.9% expansion in 2022, Istat
Investment is likely to be the main growth driver for both this
year and the next one, while household consumption is set to slow
sharply as high inflation weighs on consumer spending.
Italy's economy expanded by 0.5% in the third quarter compared
with the previous three-month period, but economists broadly expect
the country's economy to take a downturn at year-end.
"Falling consumption will drag Italian gross domestic product
down over the coming two quarters, after being the main boost in
the first half," Pantheon Macroeconomics senior Europe economist
Melanie Debono said in a note. Pantheon expects the Italian economy
to contract by 0.5% in the fourth quarter and by 0.2% in 2023's
first quarter, taking the economy into a short and shallow
Write to Xavier Fontdegloria at email@example.com
(END) Dow Jones Newswires
December 06, 2022 06:54 ET (11:54 GMT)
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