Italy: Slow progress, economically and structurally

With an increase in real GDP of 0.3%, economic growth in Italy fell considerably behind expectations in 2003. The unemployment rate was 8.7% for the year. Inflation reached 2.8%. In 2004 real GDP will probably increase by around 1%. The unemployment rate will be ca. 8½% for the year, and consumer prices will be around 2½% higher than the previous year. In 2005 GDP will increase by around 2%. The unemployment rate will decrease to 8¼%, and prices increases will be around 2½%.