Oil Price Shock Hits Italy's Economy
The Italian economy is facing challenges due to high oil and gas prices, which are holding back growth. Companies are taking out loans just to pay their bills, according to Confindustria.
In a positive sign, foreign tourist spending in Italy rebounded in June, increasing by 6.2% year-on-year compared to May. This has boosted confidence among businesses in the sector.
However, exports are declining, with a 0.4% drop in May at constant prices. Despite this, exports over the first five months have continued to grow, albeit at a slower pace than the long-term average.
The European economy is also experiencing mixed signals. Industrial production rose in Spain and Germany, while the US is slowing down. China's economy is being driven by exports, which are up 27% year-on-year due to the semiconductor boom linked to artificial intelligence.