The first breakdown of Italy’s GDP in Q4 showed that the slowdown in growth was driven by household spending. This is perhaps unsurprising given that real wages are falling, and might also explain the loss of support for the Government ahead of Sunday’s election. We expect the next government, once it is formed, to loosen fiscal policy. But GDP growth is likely to remain fairly slow by regional standards.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.