“We are in a phase of cyclical slowdown, last quarter we grew sluggishly, as did [the rest of] Europe,” Panetta told a meeting of Italian Banking Association ABI’s executive committee.
“There is a boost from consumer spending, and this is positive, thanks to the resilience of employment levels.
“We expect 2023 to have ended with GDP growth of between 0.6 and 0.7 and it will be below 1 per cent for 2024 and then rise to 1 per cent in 2025.”
Panetta declared that “inflation in Italy is under control” after it soared following Russia’s invasion of Ukraine.
“It has returned steadily below 2 per cent,” he said, adding that it is expected to “remain on average” below this threshold “over the next three years”.
The governor also said that “we expect some recovery in wage levels”.
ANSA
