REGIONAL REPORT pre-emptive efforts to strengthen the security of energy supplies and recommended that compensation for higher energy prices be temporary and targeted , and that price signals be retained .
They also welcomed the authorities ’ commitment to the National Recovery and Resilience Plan and commended the timely implementation of Next Generation EU-related targets and milestones . They recommended continued steadfast progress to lift labour productivity , investment and potential growth , as well as accelerate the green transition . Several directors saw merit in a coordinated EU approach on carbon taxation . Directors also encouraged continued strengthening of the anti-corruption and AML / CFT frameworks .
“ Efficient execution of public investment and strong reform momentum will be essential for success . Improving carbon tax design , making green investment incentives more cost-effective and streamlining approval procedures for investments in renewables would help accelerate decarbonisation and strengthen energy security ,” they said .
“ Rationalising current spending ; broadening the tax base ; strengthening tax compliance and implementing growth-enhancing reforms — including public administration , civil justice and competition — are needed to achieve and maintain a sizable primary surplus to keep public debt on a firmly downward path ,” concluded the IMF .
On 11 October 2022 , at the World Economic Outlook briefing , Pierre‐Olivier Gourinchas ( Director , Research Department , IMF ) added further comments .
“ We are projecting a very sharp slowdown for next year in Italy and a negative growth rate for 2023 . In large part , this is due to energy prices and the dependence that Italy has on gas . We are also seeing the impact of the tightening of monetary policy in the euro area as well as weak external demand ,” he outlined .
Business outlook survey
According to the Banca d ’ Italia ’ s 2022 business outlook survey of industrial and service firms , released in November , the assessments of firms in industry ( excluding construction ) and in services ( with 20 or more employees ) indicate that sales grew in domestic and overseas markets over the first nine months of 2022 ,
“ Despite an increase in the cost of production inputs , corporate profitability remained high . Considering the overall costs for the purchase of goods and services , the share of expenditure on electricity and gas increased but remained below ten per cent for two thirds of firms . The most significant increases were in industry , with three out of four firms reporting serious difficulties also in connection with rising prices for non-energy inputs . The main response on the part of firms to higher prices was to increase their selling prices ,” said its report .
According to the survey , the number of hours worked continued to rise and firms expect an increase in staff numbers over 2022 , as a whole . The growth in sales and hours worked is expected to slow down over the next six months .
Image : Shutterstock . com .
Milan , Italy . Image : Jordan Pulmano ( Unsplash ).
“ The investment plans made at the end of last year appear to have been carried out as scheduled . Firms expect to increase investment in 2023 , despite many of them reporting that borrowing conditions have worsened ,” added the survey .
“ The construction sector continued to increase its output , despite the rises in production input prices . Growth in this sector was encouraged by support measures for building renovation work , benefiting employment and profitability . Expectations for next year ’ s output point to further expansion ,” it added .
Machine tools and automation
According to UCIMU-Sistemi Per Produrre ( the Italian machine tools , robots and automation systems manufacturers ’ association ), the year 2021 was extremely positive for the Italian manufacturing industry for machine tools , robots and automation systems . These registered double-digit increases for all main economic indicators : production , exports , deliveries to the domestic market and consumption .
“ With these results , once again , Italian industry in the sector shows itself to be one of the key players in the international scenario . In particular , it ranked fifth in the world ranking of production . It came fourth among exporting countries and fourth among consumer countries , climbing one position compared to last year ,” said the association .
“ In 2022 , despite the atmosphere of general uncertainty , this positive trend should definitely continue ,” it added .
According to final data processed by UCIMU , in 2021 the Italian production of machine tools , robots and automation systems registered a 22.2 % upturn versus 2020 . Consumption grew by 40.7 % with a rise both in deliveries to the domestic market (+ 35.1 %) and in imports (+ 51.1 %). An increase was also recorded with regards to exports which , in 2021 , were 11.7 % higher than in the previous year . The export / output ratio went down from 55.2 % in 2020 to 50.5 % in 2021 .
“ In 2021 , the main export markets for Italian product offerings were Germany (+ 22.2 %); the United States ( -10.1 %); China (+ 1.7 %); Poland (+ 23.5 %); France (+ 11.3 %); Turkey (+ 28.7 %); Russia (+ 2.9 %) and Spain (+ 4.4 %). The positive performance of Italian industry in this sector had a beneficial effect on the utilisation rate of production capacity , whose yearly average strongly increased from 65 % in 2020 to 80.2 % in 2021 . Even the order portfolio was on the rise , achieving 7.3 months of guaranteed production , versus five months in the previous year ,” explained the association .
UCIMU believes that this growth trend should continue this year , citing ( in July ) that production should increase by 13 % more than in 2021 .
“ Consumption should grow , reaching a record-breaking increase of 13.2 %, driving the deliveries of manufacturers to the domestic market which should break a new record (+ 12.3 %). Even imports should go up by 14.7 %. Exports should increase by 13.6 %, returning to the levels achieved four years ago ( 2018 ),” it explained .
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