Italy showed a "surprising" slowdown
in GDP growth in the second quarter of 2023, European
Commissioner for Economic Affairs Paolo Gentiloni said on
Monday.
"In Italy, growth in the second quarter surprised on the
downside with a contraction of 0.4%, driven by a drop in
domestic demand," said Gentiloni during the presentation of the
European Union's Summer 2023 Economic Forecast in Brussels.
"Although a slight rebound is expected in the second half of
this year and next, annual growth projections have been revised
downward since spring," he continued.
According to the revised EU forecast, Italian GDP is expected to
grow by 0.9% in 2023, down from the previous forecast of 1.2%,
and by 08.% in 2024, down from 1.1%.
Gentiloni said that in the European economy "uncertainty remains
exceptionally high, largely due to Russia's ongoing war of
aggression against Ukraine".
"The tightening of monetary policy could lead to stronger
negative effects on economic activity than expected, but it
could also trigger a faster drop in inflation, which would
accelerate the recovery of real incomes," he added.
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