Ignazio Visco: Overview of economic and financial developments in Italy

Concluding remarks by Mr Ignazio Visco, Governor of the Bank of Italy, at a meeting for the presentation of the Annual Report 2022 - 129th Financial Year, Rome, 31 May 2023. 

Central bank speech  | 
01 June 2023

Ladies and Gentlemen,

Russia's invasion of Ukraine continues to have heavy repercussions on the global economy, calling into question international economic and financial integration and the multilateral world order that took shape after the end of the Cold War. A return to the tensions and divisions between opposing blocs of countries poses a real threat to the sustainable and balanced development of all economies. As well as condemning the blatant violation of the sovereignty and territorial integrity of a free nation, it is essential, in spite of everything, to pursue international cooperation strongly, including in the economic and financial fields, and to seek dialogue that embraces the diversity of values across countries and cultures in keeping with the basic principles of peaceful coexistence.

The Italian economy has demonstrated a reassuring capacity to react to the consequences of the war in Ukraine, just as it did when exiting the pandemic. Corporate restructuring processes over the last ten years, although incomplete and uneven across sectors and regions, have made our production system more robust. The acceleration of capital accumulation, the improvement in productivity after a long period of stagnation, and the recovery of international competitiveness are all encouraging signs that need to become stronger, in order to overcome the delays and underlying weaknesses that still prevent our economy from unlocking its full potential. Our ability to return to a less uncertain and more balanced structural growth path will depend on how well we are able to tackle climate change and the digital transition, and to deliver on the ongoing reform process.