The macroeconomic environment
After a strong post-pandemic recovery, the global
macroeconomic environment in 2022 experienced
a generalized slowdown in the real economy, with
global GDP growth of around 3% on an annual basis.
The world economies were impacted by sudden and
growing inflationary pressures that forced many central
banks to rapidly tighten their monetary policies, with a
consequent impact on the financial markets. The military
conflict between Russia and Ukraine, and the resulting
global uncertainty, has also aggravated conditions on
the energy, commodity and food markets, with direct
repercussions on the prices of final consumer goods.
In the United States, the real economy was heavily
affected by growing inflationary pressures, which
prompted the Federal Reserve to implement rapid
increases in its benchmark interest rate. In the euro area,
the 1st Half of the year witnessed an economic recovery
that outpaced expectations, while in the 2nd Half, with
the emergence of the great uncertainty engendered
by the hostilities between Russia and Ukraine and
the sudden increase in energy prices, the European
economies saw growth slow significantly. The European
Central Bank also decided to rapidly adjust its monetary
policy stance, with multiple increases in its benchmark
rates.
In Latin America, the macroeconomic context was
characterized by two different phases. The 1st Half of the
year saw a significant post-pandemic recovery, while in
the 2nd Half the economies of the area experienced the
rapid and large high increase in international commodity
prices, mainly driven by the conflict between Russia and
Ukraine. National central banks responded by tightening
their monetary policies, which, as a result, dampened the
economic recovery.
On the energy front, in 2022 the European gas market
experienced substantial volatility. The sharp rise in
prices, which saw the TTF (Title Transfer Facility) index
exceed €300/MWh during August, was caused by the
supply uncertainty of flows from Russia, which steadily
decreased over the past year. The achievement of high
storage filling percentages achieved before the winter
season, together with temperatures that exceeded
seasonal averages in November and December,
subsequently led to a sharp fall in European gas prices in
the closing months of 2022.
The rise in gas prices and a number of hitches along
the supply chain in turn led to an increase in coal prices,
which in 2022 reached an average of $290/t.
The quotations of CO
2
within the ETS (Emission Trading
System) also increased, rising by over 50% compared
with the previous year, despite the slowdown in
economic activity in the 4th Quarter.
The bullish dynamics on the commodity markets
produced a sharp increase in electricity prices
Francesco Starace
Chief Executive Officer
and General Manager
Michele Crisostomo
Chairman
7Letter to shareholders and other stakeholders