the governor ’ s concluding remarks financial year 129th financial year annual report rome, 31 may 2023 th the governor ’ s concluding remarks annual report 2022 – 129th financial year rome, 31 may 2023 ladies and gentlemen, russia ’ s invasion of ukraine continues to have heavy repercussions on the global economy, calling into question international economic and financial integration and the multilateral world order that took shape after the end of the cold war. a return to the tensions and divisions between opposing blocs of countries poses a real threat to the sustainable and balanced development of all economies. as well as condemning the blatant violation of the sovereignty and territorial integrity of a free nation, it is essential, in spite of everything, to pursue international cooperation strongly, including in the economic and financial fields, and to seek dialogue that embraces the diversity of values across countries and cultures in keeping with the basic principles of peaceful coexistence. the italian economy has demonstrated a reassuring capacity to react to the consequences of the war in ukraine, just as it did when exiting the pandemic. corporate restructuring processes over the last ten years, although incomplete and uneven across sectors and regions, have made our production system more robust. the acceleration of capital accumulation, the improvement in productivity after a long period of stagnation, and the recovery of international competitiveness are all encouraging signs that need to become stronger, in order to overcome the delays and underlying weaknesses that still prevent our economy from unlocking its full potential. our ability to return to a less uncertain and more balanced structural growth path will depend on how well we are able to tackle climate change and the digital transition, and to deliver on the ongoing reform process. the international environment in 2022, global economic growth remained below 3. 5 per cent, 1 percentage point less than expected on the eve of the outbreak of war. according to the international monetary fund ( imf ), it is unlikely to reach 3 per cent this year ( figure 1 ). inflation almost touched 9 per cent globally ; in the advanced countries, it exceeded 7 per cent on average, the highest value for 40 years. in some economies, and particularly in the united states, the acceleration in prices was largely driven by a sharp rebound in consumption that began in 2021, while supply was still constrained by pandemic - related restrictions and, as regards international trade, by the resulting bottlenecks in the supply of commodities and intermediate inputs ( figure 2 ). in europe, by contrast

##lli, “ relationship and transaction lending in a crisis, ” the review of financial studies, 29 ( 2016 ), 2643 – 2676. level, this aim is being pursued by implementing the capital markets union project : enriching the types of financing available to non - financial corporations, broadening the portfolio choices of investors, enhancing the efficiency of financial intermediation, removing barriers to cross - border investment, and increasing funding options for smes and infrastructure. in italy, a number of additional initiatives with similar goals have been taken in recent years, such as minibond issues, debt funds, tax incentives for venture capital and allowances for corporate equity. yet in italy, as well as in many other european countries, the role played by the financial markets and non - bank financial institutions is still limited. this is why i am looking forward to discussing these issues with our eminent experts. designed by the printing and publishing division of the bank of italy