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Stability of Italian GDP in the third quarter of 2024

Stability of Italian GDP in the third quarter of 2024

In the third quarter of 2024, Italy recorded stable gross domestic product (GDP), with an increase of 0.4% compared to the same period of the previous year. According to data provided by ISTAT, GDP, expressed in values linked to the reference year 2020, remained stationary compared to the previous quarter. This result is in line with forecasts, which indicated lower growth than the expectations of analysts and investors
.

Tertiary sector growth and industrial contraction

The growth of the tertiary sector contributed significantly to this result, while the agriculture, forestry and fishing sector showed a slight contraction. In addition, the industry has experienced a sharp reduction, highlighting the difficulties that this sector is facing. The current estimate, although provisional, reflects a complex economic environment, in which domestic demand has had a positive contribution, while the net foreign component
has contributed negatively.

Impact on financial markets

The GDP figure had immediate repercussions on the financial markets. Piazza Affari opened lower, following the trend of other European stock exchanges. In particular, Campari‘s stock fell sharply after financial results were lower than expected. On the other hand, Lottomatica presented the accounts for the first nine months of 2024, confirming the forecasts for the entire financial year. AMD also recorded a drop in trading, due to revenue forecasts below analysts’ estimates. However, Alphabet shares saw an increase of 4% after the close, thanks to quarterly results that were higher than expected
.

Future prospects for the Italian economy

The prospects for the Italian economy remain uncertain, with signs of growth in the tertiary sector that may not be sufficient to compensate for the difficulties of the industrial sector. Analysts will continue to monitor GDP trends and market dynamics, waiting for additional data that can provide a clearer picture of the economic situation. The stability of GDP, although positive, must be interpreted with caution, considering the challenges that Italy faces in a changing global economic environment
.

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