However, for inflation rates to come down to levels below 2% in 2003, as currently projected by most forecasts, it is crucial that oil prices do not escalate and that wage moderation prevails. With respect to nominal wage growth, we have already noted an upward trend over recent years, which continued even when the economy started to slow down.
During the first years of the new century the Italian economy as a whole showed clear signs of reaction and dynamism.