Italian debt is growing (but consumption is not) in 2005
In just twelve months, consumer credit grew by 23.4%, registering considerable volumes of almost 47 billion euros in 2005.
While there has been a surge in the indebtedness of Italian households, there has not been an equally visible growth in per capita consumption, which has risen by just one per cent (1.1) in the last two years. Italians increased their debt burden by 13.3 per cent in 2005 compared with the previous year. Mortgages to buy houses account for almost half of total debt (390.6 billion euros), up 17.3%.
Increasingly weighing on household budgets is not only debt for house purchases but also for emergencies requiring liquid credit (illness, marriage, legal expenses, tax arrears and other sudden needs). These loans amounted to some €127 billion, a volume up 4.2% compared with a year earlier.
Italian household debt
Home loans and other forms of debt
Where the 13th-month salary payment goes