Italy Faces Economic Headwinds in 2024 Amid Slowing Growth, Rising Inflation and Climate Threats
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Slowing GDP growth rate - the Bank of Italy forecasts further slowdown to 0.6% in 2024 from 0.7% in 2023
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Rising inflation - expected to increase above 2% threshold again after temporary decline
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Declining investment and consumer spending - construction investment to fall 8.6%; consumer spending hurt by tightening financial conditions
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Softening labor market - unemployment rate forecast to rise to 8.5% by end 2024 from 7.6% in Q2 2023
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Increased climate disasters - more frequent catastrophic floods as in 2023 would continue to damage socio-economic landscape