Italy: Economic reforms slowly introduced

In Italy economic activity recovered in the second quarter of 2002. The real gross domestic product expanded by around 0.4% for the year and the unemployment rate sank to 9%. The inflation rate went up to 2.6%. In 2003 the real gross domestic product will probably increase by around ½%. On the labour market the situation will deteriorate somewhat, and the unemployment rate will increase to 9¼% for the year. Consumer prices will be around 2¾% above the level of the previous year. In 2004 GDP will grow by 1½%. The unemployment rate will remain at 9¼% and inflation will exceed the level of 2003 by 2¼%.