The Economic Situation in Italy
The economic situation in Italy
2009
Krisztián Pásztor
5/12/2011
The Economic profile of Itlay
Since the II World War Italy has transformed form an agrecurtural society into a world industrial power. The industry is driven by the large state-owned firms and by the large number of family owned businesses. It has the seventh largest economy in the world and the fourth largest in Europe. It is part of the European Union and member of the G8 industrialised nations. The country has a high standard of living, with a $35,435 nominal GPD per capita. Italy’s economy can be divided into two parts, the industrialised North part, and the less Industrialised South part.
Rate of (GDP) growth
Before 2008 Italy had a slow but steady positive movement in its GDP. The year 2008 was the year of the economic downturn. Italy reached a -1.3% real GPD in 2008 and in 2009 it dropped to a outstanding -5% real GDP. These figures show us that Italys economy was really hit by the recession. Moreover, the italian government couldn’t significantly increase government spendings because of the country’s high budget deficit (reached -5.2% of GDP in 2009) and public debt(reached 115.8% of GDP in 2009). Unemployment rate increased 0.9% to 7.1% . The Italy government tried to stimulate the economy with a few stimulus packages. Which add up to a total of 80 billion EUR. About hafl of the money was from the European Union to help increase the economy. The government spent 20 billion euros from the 80 billion stimulus package on the italian financial sector so that they can keep up the support for the economy with conteniuos lending. They lowered mortgage rates to 4%, and spent 2,1 billion EUR on the car industry. In concluion, Italy was in a bad situation which can be easily seen by the GDP figures. They tried to increase the economy with stimulus packages with a total amount of 80 billion EUR.
Stance of fiscal policy
Italy has already had a outstandingly big public debt with
2009
Krisztián Pásztor
5/12/2011
The Economic profile of Itlay
Since the II World War Italy has transformed form an agrecurtural society into a world industrial power. The industry is driven by the large state-owned firms and by the large number of family owned businesses. It has the seventh largest economy in the world and the fourth largest in Europe. It is part of the European Union and member of the G8 industrialised nations. The country has a high standard of living, with a $35,435 nominal GPD per capita. Italy’s economy can be divided into two parts, the industrialised North part, and the less Industrialised South part.
Rate of (GDP) growth
Before 2008 Italy had a slow but steady positive movement in its GDP. The year 2008 was the year of the economic downturn. Italy reached a -1.3% real GPD in 2008 and in 2009 it dropped to a outstanding -5% real GDP. These figures show us that Italys economy was really hit by the recession. Moreover, the italian government couldn’t significantly increase government spendings because of the country’s high budget deficit (reached -5.2% of GDP in 2009) and public debt(reached 115.8% of GDP in 2009). Unemployment rate increased 0.9% to 7.1% . The Italy government tried to stimulate the economy with a few stimulus packages. Which add up to a total of 80 billion EUR. About hafl of the money was from the European Union to help increase the economy. The government spent 20 billion euros from the 80 billion stimulus package on the italian financial sector so that they can keep up the support for the economy with conteniuos lending. They lowered mortgage rates to 4%, and spent 2,1 billion EUR on the car industry. In concluion, Italy was in a bad situation which can be easily seen by the GDP figures. They tried to increase the economy with stimulus packages with a total amount of 80 billion EUR.
Stance of fiscal policy
Italy has already had a outstandingly big public debt with