Current Macroeconomic Situation and Forecast - Italy
CURRENT MACROECONOMIC SITUATION AND FORECAST
- iTALY
(Seminar work)
In view of current economic situation in European Union I choose for my seminar work Italy, which is one of the most affected countries by financial crisis. Coupled with three more southern European states that are known by term PIGS. First time became this unflattering term in 1990s as name of countries with similar economic environments and it originally referred to the economies of Portugal, Italy, Greece and Spain. The acronym became popular again along with a financial crisis when the economies of Portugal, Ireland, Italy, Greece and Spain were seen as especially vulnerable due to high or rising government debt levels and high government deficits relative to annual GDP. Before begin talking about macroeconomics situation of Italy, I would like to mention some basic concepts which will be analyzed in following text. First of all, it is important to explain what macroeconomics is. Macroeconomics includes study of the behaviour of the whole economies or economic systems. It is concerned primarily with the forecasting of national income, through the analysis of major economic factors that show predictable patterns and trends, and of their influence on one another. These factors include: * GDP (Gross Domestic Product) - the monetary value of all goods and services produced within a country's borders in a specific time period. GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. * GNP (Gross National Product) - the measure of a country's economic performance, all goods and services that its citizens produced and whether they produced these items within its borders. * GNI (Gross National Income) - is GDP plus net receipts from abroad of wages and salaries and of property income. * Unemployment rate (in %) – the percentage of
- iTALY
(Seminar work)
In view of current economic situation in European Union I choose for my seminar work Italy, which is one of the most affected countries by financial crisis. Coupled with three more southern European states that are known by term PIGS. First time became this unflattering term in 1990s as name of countries with similar economic environments and it originally referred to the economies of Portugal, Italy, Greece and Spain. The acronym became popular again along with a financial crisis when the economies of Portugal, Ireland, Italy, Greece and Spain were seen as especially vulnerable due to high or rising government debt levels and high government deficits relative to annual GDP. Before begin talking about macroeconomics situation of Italy, I would like to mention some basic concepts which will be analyzed in following text. First of all, it is important to explain what macroeconomics is. Macroeconomics includes study of the behaviour of the whole economies or economic systems. It is concerned primarily with the forecasting of national income, through the analysis of major economic factors that show predictable patterns and trends, and of their influence on one another. These factors include: * GDP (Gross Domestic Product) - the monetary value of all goods and services produced within a country's borders in a specific time period. GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. * GNP (Gross National Product) - the measure of a country's economic performance, all goods and services that its citizens produced and whether they produced these items within its borders. * GNI (Gross National Income) - is GDP plus net receipts from abroad of wages and salaries and of property income. * Unemployment rate (in %) – the percentage of