Italy is currently suffering increase in poverty rates in Italy, reaching a 15-year high, as the most recent data shows that the nation’s economy decreased by 8.9% in 2020 – one of the worst recessions in Europe.
But things are on the right track to improve this year, as “world trade and global industrial production have remained on a recovery path,” reported ISTAT.
In the fourth quarter of 2020, the Italian Gross Domestic Product decreased by 1.9% compared to the previous quarter, but the drag for 2021 is positive, with a growth of 2.3%.
Household consumption fell in the last quarter of last year, which the statistics agency attributes to lower spending on services, clothing and footwear.
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The fall in economic activity is due to a reduction in working hours, but the forecast is positive based on the activity of the last month.
Italian Economy and Finance Minister Daniele Franco told TV news TG2 that “the impact of the recovery on Italian GDP will be an increase of 3%.”
In a hearing on the Recovery Fund, Franco said: “For our country, the plan is a very important opportunity, which allows addressing some structural problems in a coordinated manner and with significant resources.”
The recovery pot is currently set at € 196 billion and the minister said there will be “a very quick and concise phase” in April. However, it is not clear how that will be, since Franco stated that “they have not yet identified a strategy” for it.
In any case, the figures for Italy are on the rise. In February, inflation was on the rise. The rebound in business and family confidence, combined with the recovery in international trade, could be factors that are contributing to a positive economic evolution, ISTAT said.
The report further added that the economic sentiment indicator for both the euro area and Italy is increasing considerably.
To change the fortunes of the nation, Franco said that the next generation of EU citizens can “contribute to increasing our potential for development.” To do so, Franco affirms that the Italian plan must prioritize digitization and social inclusion.
Hopes are high that Italy’s newly appointed Prime Minister Mario Draghi, a former head of the European Central Bank, can turn around the country’s troubled economy.
in a recent speechDraghi said the coronavirus crisis presents “the opportunity or rather the responsibility to start a new reconstruction” of Italy’s economy.
Italy expects to receive more than € 200 billion from the EU’s post-coronavirus recovery fund, and Draghi insists the money will be used for major reforms.
“These resources will have to be spent with the goal of enhancing the growth potential of our economy,” Draghi said.
He promised to reform Italy’s stifling bureaucracy, labyrinthine tax code and fast-paced justice system, as well as to focus on education and close the gap in female employment.
George is Digismak’s reported cum editor with 13 years of experience in Journalism