Italy’s economy recorded a weak performance in the third quarter, and is not expected to improve significantly in the last three months of this year, according to a report issued by the country’s main business association.
“In addition to the decline in industrial and commercial activities, services have suffered a setback,” Confindustria said in its report published on Saturday. “The European Central Bank continues to raise interest rates, while credit and liquidity decline, and energy costs are increasing.” “All this affects consumption and investments, with foreign demand declining.”
The Italian economy unexpectedly contracted by 0.3% during the second quarter, compared to the first three months of the year.
The Italian government had indicated in its latest budget forecasts, which it approved earlier this week, that the economy would grow 0.8% in 2023, and 1.2% next year.
Last Wednesday, Italian Finance Minister Giancarlo Giorgetti blamed the European Central Bank’s raising of interest rates and the Russian invasion of Ukraine for the slowdown in the growth of his country’s economy.
The government of right-wing Prime Minister Giorgia Meloni risks a confrontation with Brussels, after postponing the EU budget deficit target until 2026, as it struggles to avoid falling into recession.
2023-09-30 15:41:02
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