Italy | Economic Overview | 2013 Q1
Recent updates for the Italian economy are showing that recovery may be still out of reach. In the fourth quarter of 2012, GDP contracted 2.8 percent year-on-year and 0.9 percent quarter-on-quarter. More importantly, the possibility of further austerity measures continues to harm consumer confidence which was reported near its record low in April of 2013. To make things worse, the unemployment rate is near the all-time high of 11.7 percent. The business sector outlook is not brighter. In March, industrial production decreased 5.3 percent and is now 25 percent lower than at its peak five years ago. The business confidence indicator, mainly stable, is still very low. On top of that, the February election resulted in a parliamentary stalemate and is bound to drive up borrowing costs as investors’ confidence is harmed by political instability.
5/10/2013 9:24:45 AM