Italy’s post-pandemic recovery could be fading

Significance The relatively vigorous post-pandemic recovery, fuelled by EU funds and a government-inspired construction boom, is petering out. Exports are slowing, and business and investor confidence are declining. Impacts Public sector strikes over the budget risks undermining voter support for the right-wing coalition. Tensions between the coalition partners are beginning to emerge, especially between Forza Italia and League parties. Economic downturns in France and Germany will further depress demand for Italian exports next year.