The subprime crisis’ effects on the Italian economy and finance 2007

This content is also available in: Italian

The Italian economic situation is worsening. The Country is moving at a slower pace than Europe, also weighed down by a higher public debt compared to other countries. The 2008-2011 EFPD clearly states: “growth will be sustained by domestic demand, and in particular by private consumption, favoured by the gradual recovery in confidence”. Today, the subprime mortgage scandal suggests a more cautious stance to the Government. According to Eurispes’ forecasts, the direct and indirect effects of the August financial crisis in Italy will put a brake on GDP growth, which will not exceed 1.7% in 2007. This would represent a drop of 0.3% compared to the growth forecasts indicated in the DPEF, for which the Treasury has already foreseen a correction from 2% to 1.8%.
According to Eurispes, the decrease in consumption will affect the gross domestic product, slowing it down and affecting family incomes by about 3.3 billion euros, equal to 160 euros per household. In addition, the losses resulting from the lack of expected returns on the bond investment must also be taken into account. The negative impact on the annual budget, even if we assume minimal percentages for these operations, is calculated at around 140 euros per household.

This content is also available in: Italian

Introduzione

This content is also available in: Italian

The subprime scandal, the international crisis and the impact on the Italian economic and financial system

This content is also available in: Italian

Please log in as a registered user to get access to the full version of the documents

Existing Users Log In

   
Social Network