Temporary fiscal interventions, carefully calibrated to protect the soundness of the public finances, are able to limit rises in energy prices and to support the income of the households most in difficulty, in both cases reducing pressures to increase wages. This allows for a more gradual normalization of monetary policy, mitigating the risks of a recessive impact on the economy.
In Italy, the expansion of GDP in 2021, equal to 6.6 per cent, amply surpassed expectations, mainly reflecting strong investment and the recovery of exports. Although the energy deficit has doubled, the current account side of the balance of payments has remained broadly positive, thus helping to strengthen the positive net international investment position.