Bad news for the Italian economy. The third economy of the euro zone is plunged on its longest recession period since the end of the Second World War.
Figures about the Italian unemployment were published last Friday. They seemed a little bit less discouraging, but they are already criticized by the National Statistics Institute. This Institute has revised downwards the GDP and the growth rate. Next year, the growth will only be of +0.5%, whereas the Institute banked on 1% last May. It’s already the third consecutive year of recession for Italy.
The institue explains this downgrading by the weakness of perspectives for the international trade and for the investments in Italy in the 2014-2016 period.
«The Matteo Renzi government has sinned by excess of optimism. Stability law (the budget) adopted on the 14th of October by the Cabinet will probably not have the expected effects on the growth for the two next years,» has declared the National Statistics Institute. The unemployment will reach 12.5% this year (+0.3% compared with 2013). The Italian status depends on the orientations that will take the ECB and the Jean-Claude Juncker Commission. This commission promises to unfreeze 300 billion euros of investments for the country. However, the government also has to carry out structural reforms.
Paul Blin Kernivinen, IEJ,3E1