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Italy

To begin on a positive note, Italian savings and exports - the two macro-variables on which the country’s system is based - have withstood the growth of inflation and tensions in international relations. Meanwhile, there is a heated debate on the socio-economic effects of inflation itself, which is focusing on the role that fiscal and monetary policy should have played.

Italy’s manufacturing sector confidence index rose from 101.5 in December to 102.7 in January, well above market expectations of 101.8. This was the strongest reading in five months, supported by optimism about the future course of orders, production and inventory reduction. Meanwhile, the composite business confidence index - which combines manufacturing, retail, construction and services - rose to 109.1 from 107.8.

The biggest challenge for Italian companies in the early months of 2023 will be to attract and retain talented people. In Italy, almost 1.7 million voluntary resignations were recorded in nine months of 2022 - an increase of 22% compared to the same period in 2021. This figure was certainly affected by COVID but concerns all types of contract. Italian workers are looking not only for an adequate salary but also, and above all, for career paths and flexible hours.