ITALY RECOVERY AHEAD, BACK TO PRE-PANDEMIC LEVELS IN 2023 – BOI

By Silvia Marchetti

ROME (MNI) – The Bank of Italy Friday forecast an average 3.5% GDP growth this year, 3.8% in 2022 and and 2.3% in 2023 when pre-crisis levels are expected to be recovered.

In its economic bulletin the BOI said the European Central Bank’s ongoing accommodative policy stance and new European measures aimed at supporting countries in the fight against COVID-19 will contribute in sparking growth.

“Based on such assumptions, GDP would return to growing again in a significant manner starting from this spring,”, said the bank. 

The outlook is rosier compared to the previous one released in July, and GDP performance could be even better if contagion risk is efficiently fought, said the BOI.

According to the BOI’s estimates the pandemic health emergency is likely going to abate and will “be gradually under control” in the first half of this year, and totally overcome by the end of 2022. 

In 2023 a return to pre-pandemic levels would trigger investments and exports recovery, while consumption will still be “gradual” and weaker. 

Inflation would remain low this year but will likely gradually rise in 2022-23. 

Contact this reporter: silvia@macenews.com.

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