The rising energy priceswhich increased with Russian invasion of Ukrainecould reduce Italy’s Gross Domestic Product (GDP) by 0.7 percentage points in 2022, the National Institute of Statistics (Istat) warned on Wednesday.
“The strong geopolitical tensions have considerably modified the international scenario, as well as the possible evolution of the Italian economy,” Istat commented in a press release.
In addition to slowing down Economic recovery In the fourth quarter of 2021, with a GDP increase of only 0.6%, a drop in industrial production and a drop in retail sales were recorded in January, the institute specifies.
Before the wave of infections by Omicron variantthe Italian Central Bank revised its data downward in January for 2022, before the invasion of Ukraine, and calculated a GDP increase of 3.8%, compared to 4% estimated in December.
Economic activity runs the risk of being penalized in 2022 “due to the fall in the level of household consumption, accompanied by the tendency to save,” according to Istat.
Russia “plays a modest role as a supplier of products to Italy”, with only 3% of imports, “but it is crucial for the supply of raw materials”, the institute stresses.
Moscow supplies more than 40% of the gas Italy buys abroad and more than 10% of its refined oil products.
The Russian market is also “one of the ten main destinations for exports of Italian products from sectors such as furniture, clothing and machinery,” recalled Istat.
