Italy: is a "miracolo economico" around the corner?

Social and political conditions in Italy have changed considerably, with the result that structural change has accelerated and the still-numerous rigidities have been more quickly broken up. In 2000 the international economic upswing contributed to a noticeable increase in economic growth (+2.9%). The situation on the labour market has continued to improve. Employment has increased by 1.5% and the unemployment rate fell by 0.8 percentage points to 10.5% for the year as a whole. Consumer prices increased by 2.9%. At the beginning of this year growth continued at the same pace, but a clear slowdown is expected during the summer half year. Real GDP is expected to grow by about 2%. The labour market will show moderate improvement. Consumer prices should rise by 2¾% over 2000. With improved international economic conditions, the Italian economy will expand at a faster pace in 2002. Economic growth should amount to 2¼% with a gradually faster increase in employment. Inflation will weaken. The current accounts will continue to be nearly in balance.