Preliminary estimates for Italian GDP growth in Q1 2023 show a 0.3% increase, marking the third consecutive quarter of growth following a decline in Q2 2023. All economic sectors saw an increase in value added, with a negative contribution from the domestic component and a positive contribution from net foreign demand.
Business confidence dropped in April after rising in March, affecting all economic sectors. Consumer confidence also decreased, hitting the lowest point since November 2023, according to Istat.
In Q1 2024, Italy’s manufacturing sector experienced a sharp slowdown with a 1.3% decline compared to Q4 2023. Retail sales remained flat in value but decreased in volume by 0.4% during the same period. Exports in value remained stable while imports decreased by 4.8% between December 2023 and February 2024. Italy’s trade balance improved further, returning to positive territory since late 2022, according to government statistical agency Istat.
In March, employment grew for all demographics except those aged 35-49. The number of people employed reached 23,849,000, with an employment rate of 62.1%. Unemployment dropped by 2.8%, mainly affecting men under 35 and over 50.
The consumer price index for all households remained stable, with a modest growth of 0.6% projected for 2024. Energy prices continued to decrease, with significant declines seen in January, February, March, and April. The data for the first four months of the year indicate a slight decrease in overall inflation, driven by falling energy prices.
