21.8 C
London
Saturday, June 22, 2024

Italy. GDP decline and the policy of Georgia Meloni’s government – bad prospects for the Italian economy

Must read

- Advertisement -


GDP contracted by 0.4 percent in the second quarter and investment fell by 1.8 percent, the Italian statistical institute (Istat) reported. – The confidence of investors and markets was undermined by the decision of the Meloni government in early August to introduce a 40 percent tax on extraordinary bank profits, which caused a sharp decline in the Milan stock exchange and a drop in the value of banking assets, and also shocked international markets – he explained to AFP.

Decrease GDP Italy is bigger than expected, investor confidence indicators are also falling, and unemployment increased by 7.6% in July. on a month-to-month basis. Economic output fell by 1.2% in the second quarter. compared to the previous quarter.

Investor confidence undermined

Pantheon Macroeconomics analysts estimate that this year Italy may enter a recession, although the government of Prime Minister Georgia Meloni still assumes that economic growth will amount to 1%. After ten months of Meloni’s rule, the country’s economic prospects are becoming increasingly gloomy, AFP comments, noting the moods and assessments of economists gathered for the so-called Little Davos, an annual conference organized by the think tank The European House-Ambrosetti in Cernobbio, in southern Italy, which this year started on Friday and will last until Sunday. AFP reminds that the confidence of investors and markets was undermined by the decision of the Meloni government in early August to introduce a 40 percent tax on extraordinary bank profits, which caused a sharp decline on the Milan stock exchange and a drop in the value of banking assets, and also shocked international markets.

- Advertisement -

Results well below the euro zone average

The index, which measures the level of trust of company CEOs, lost 12.5 percentage points during the year. and is now 29, while in September 2021, during the government of Prime Minister Mario Draghi, it reached 70.6. The efficiency of the Italian economy is now well below average euro zone, in which GDP growth was 0.3% in the second quarter. Industrial production fell by 1.2% in the period from April to June. compared to the previous quarter. The only positive sign that Istat has recorded is a decline inflation in August to 5.5 percent on an annual basis; in July it was 5.9 percent. The Italian government, by decree-law, established at the beginning of August a one-off 40% tax on extraordinary profits of banks obtained as a result of interest rate increases introduced by the European Central Bank.

Read also: The Italian Prime Minister receives threats after the abolition of citizen’s income

Main photo source: Ioana Filipas/Shutterstock



Source link

More articles

- Advertisement -

Latest article