![]() ![]() …At the end of 2016, Italy’s central government debt was the third-largest in the world…, at $2.3 trillion. Not only was Italy severely battered by Europe’s double dip recession (its GDP is lower today than it was in 2005) but when we look at the growth of labour productivity…, we can see that Italy has been stagnating since the mid-90s. Unfortunately, the fundamentals do not look good. Italy will increasingly need to rely on growth fundamentals to sustain its public debt. Here are excerpts from some Vo圎U research. You don’t have to believe me (though you should). Over the last few years, it has received official and unofficial bailouts from the International Monetary Fund and the European Central Bank, and Italy is considered at high risk for a budgetary meltdown when another recession occurs.Īnd let’s not forget that the country faces a demographic death spiral. Moreover, thanks to decades of excessive government spending, the nation also has very high levels of public debt. The score for fiscal policy is abysmal and regulatory policy and rule of law are also problem areas. There’s been almost no growth for the entire 21 st century.īad government policy deserves much of the blame.Īccording to Economic Freedom of the World, Italy is ranked only 54th, the worst score in Western Europe other than Greece. To put it mildly, Italy’s economy is moribund. ![]()
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