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MNI BRIEF: Red Sea Concerns For Italy Economy - BOI Bulletin

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Extended period of disruption could have impact on Italy's import prices, the latest Bank of Italy report notes.

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The attacks in the Red Sea forcing global maritime trade to take longer routes could have a big impact in the Italian economy if they persist during the first months of 2024 due to large levels of imports -- including energy -- that use the Suez canal, the Bank of Italy said in its economic bulletin published on Friday.

According to the BOI, with data relative to 2022, 16% of Italian imports come via the Suez route, including oil and raw materials for the fashion industry -- 30% of which come from Asia. If ships have to keep deviating it will mean an extension of delivery goods “with consequent repercussions on production chains” and higher fleet fees, the repoirt noted.

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The attacks in the Red Sea forcing global maritime trade to take longer routes could have a big impact in the Italian economy if they persist during the first months of 2024 due to large levels of imports -- including energy -- that use the Suez canal, the Bank of Italy said in its economic bulletin published on Friday.

According to the BOI, with data relative to 2022, 16% of Italian imports come via the Suez route, including oil and raw materials for the fashion industry -- 30% of which come from Asia. If ships have to keep deviating it will mean an extension of delivery goods “with consequent repercussions on production chains” and higher fleet fees, the repoirt noted.