The world of economic progression has always been the primal acid test of a nation’s domineering social and political structures. More so, this is the basic and ultimate gauge as to how a certain government effectively do its main task of instituting its most viable social reforms during the incumbency of a given leader. In this regard, Italy is currently facing the most devastating storm in relation to its roller coaster economy. Based on verified reports, the unexpected economic meltdown of this country has resulted into a recession.

This came after the Italian government had bitterly experienced a 0.2% shrink in its total Growth Domestic Product for the second quarter of this year. Prior to that second major blow in its once robust economy, it had a 0.1% contraction in the first quarter of 2014. Conversely, the last stretch of 2013 their government had somehow projected that an economic meltdown is too improbable to take place. But, it was really far from over. As a result, known economists have surmised that a downsliding GDP can be categorically classified as an economic recession in the strictest sense. Hence, to better understand the present predicament of Italy Mehta, European economist with Legal & General Investment Management has further explained in detail.

Italy has a huge pile of government debt and they need growth to bring that debt stock down, so having such weak growth figures is a major setback.

Italy is facing the most unthinkable challenge in history following an economic meltdown in a row.

Italy is facing the most unthinkable challenge in history following an economic meltdown in a row.

On the other hand, the Bank of Italy has rebutted these prognosis of world economists by saying that their GDP as of last year had reached a very significant percentage of 9% since the Asian Economic Crisis in 2007. Above anything else, there are other statistical data which have revealed that the economy of Italy is in full swing. To date, it has proudly disclosed that their industrial output has skyrocketed to 0.9% from May to June. Accordingly, this was the country’s huge increase in the last five months of this year. Therefore, an economic meltdown has no accurate and uncontested basis in support of those claims.

Category: News

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