Several 'plagues' hit Italy: recession, deflation, job losses and little hope ahead

Monday, September 1st 2014 - 11:06 UTC

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The Italian economy contracted by 0.2% in the second quarter of 2014, Istat said Friday, confirming the continuation of the country's longest postwar recession. GDP was down 0.1% in the first quarter, it added. Likewise deflation hit Italy in August for the first time in more than 50 years, while unemployment rose again in July by 0.3% over June to 12.6%. Read full article

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Anglotino
Italy keeps avoiding the painful reforms needed. It keeps tinkering at the edges waiting for others to grow and drag them up with them.

Italian immigrants have made a massive contribution to Australia's economy and society, so it just goes to show what's good strong legal and political system can do.

With a soon to be shrinking population, Italy's economy can decline relative to others but no need to decline absolutely.
Sep 01st, 2014 - 12:03 pm - Link - Report abuse 0
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ChrisR
I have worked in the north and south of Italy but have no experience of the centre.

The old saying the north works and the south plays while the rest pay for it has a degree of truth about it.

The southerners are great though. Very relaxed, friendly and welcoming, spoilt only by the dead hand of the mafia that was the only reason I did not retire there.
Sep 01st, 2014 - 12:54 pm - Link - Report abuse 0
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CabezaDura2
By 2050 more than 35% of italy will be over 60 yo. Guess that means trouble. On the other hand the have remarkably low house hold debt for a developed economy.
Sep 01st, 2014 - 01:03 pm - Link - Report abuse 0
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4n conTroll
It isn't a coincidence that Italy, Japan, and Russia can't jump-start their economies.

There are no reforms that can stop deflation from people getting old and spending less on consumer goods and more on basic food and medicine.
Sep 01st, 2014 - 03:46 pm - Link - Report abuse 0
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CabezaDura2
The capital is obviously there. Household debt is low. It would be prudent a solution in which the Italian banks could use the retired money and give the young unemployed ones loans to create small and uni personal businesses.
Sep 01st, 2014 - 05:04 pm - Link - Report abuse 0
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