Italian Economy Calamity
Reason
Posted by:
borsa.tv
Questions seem to be arising in the minds of a lot of economic experts these days about the strength of the Italian Economy. They want to know whether it is trustworthy or not? The new economic plan as proposed by Italy is much too ambitious according to the leading experts of economy from all over the world; and a lot of effort will have to be made in order to reach that point where Italy can made a significant contribution to the European econ  omy. Basically, all of these efforts are a result of the new economic plan as proposed by all the leaders of Europe and all of it is required to bring an improvement in the economic conditions of Europe. In the recent two to three years, there has been an economic crisis for the European countries and the life of all the European people has really not been easy in this span of time. People really are facing troubles leading their lives in a comfortable way and are lacking opportunities in jobs and earning income. The value of currency has been decreasing and it has caused an increase in the prices of different objects.
Italy nowadays, is under a debt of €1900 billion and in order to pay it in a smooth way a 120 percent of Italy's GDP would be required which under these conditions appears to be quite difficult to achieve. However, according to the economic experts of Italy and also from all over the world, this is not one of those things which can't be achieved.
Another method that has been proposed by the Economic experts of Italy is that in order to get rid of this total debt, the treasury debt will have to be opened for private investors. This will make things easier for Italian Economy and help it in getting rid of this debt quite soon. Some people, however, do not agree with this because this method of getting rid of national debt by opening it for private investors is not a proven right method. According to them, Government will have to think about something else.
Tags: Italy, Debt, Experts, Economy, Private
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The Italian Economy
Reason
Posted by:
borsa.tv
Questions are being raised over whether the Italian economy can survive the current downturn. It has had a negative effect on the country's production sector, with falling gross domestic product (GDP) and rising unemployment levels. The GDP is a country's monetary value of a finished product within a given time period. It is used to indicate a country's economic health and the standard of living. In Italy there has been a downturn in the number of sales of products made domestically. The production system in Italy has also been affected by the redundancy hours authorised by the Cassa Integrazione Guadagni (Wages Guarantee Fund).
This has had a marked effect on unemployment levels which have been increasing gradually over the years. There have been huge job losses both in the public and the private sectors; especially with people who were working on employment contracts. Self-employed people have also lost jobs, particularly in the industrialised regions such as Lombardy and Friuli-Venezia Giulia. Most companies in that area have filed for bankruptcy having recorded turnovers less than 2million Euros. This means that there is an increased number of Italians between the ages of 15 and 64 who are inactive. Larger companies seem to be resilient during these harsh economic times, but smaller enterprises are feeling the full impact.
This is mainly due to their limited access to credit, fewer resources to start reorganisation and the difficulties faced by large corporations where small companies are their suppliers. The state of the Italian economy is primarily due to its large debt, which is the highest in the entire Euro Zone, coupled with its stagnant growth. A bailout from Europe is not on the cards, since interest rates on the debt at 119% GDP is too costly to service. The only advantage it has is that the debt is not owed to external investors, but rather to the people of Italy. Trade Unions want the Italian government to do more than just depend on its social shock absorbers to recover from the current crisis.
New tax systems that are lenient on workers have been advocated, as well as job security for younger workers, which would also encourage investments and help to boost employment levels. The sale of bonds by the Italian government has helped raise the money needed to lower its borrowing costs by half. However, investors are not too keen yet since they are likely to drive up the borrowing costs if Italy does not straighten its finances.
Tags: Italian, Employment, Economic, People, Debt
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Italy Saving the Euro
Reason
Posted by:
borsa.tv
The economic downturn of 2008 has caused a number of problems for the European countries: and the standard of living for the people of Europe has declined. There are a number of experts who are still very worried about the coming future of this declining value of Euro and they are proposing a number of things. There are a number of economic experts who are mentioning the importance of the economic stability of Italy in saving the ever reducing value of Euro. Similarly, all the countries of Europe are associated with each other in a similar way and declining economy of one country causes a decline in the currency of other one. That is one of the most important reasons why so many people seem to be worried about the day by day decreasing economy of Italy. Recently, this reduce in the economy was much more declined towards Greece and it came out of the decline quite easily with the help of other European nations and now what remains to be seen is that whether the European countries will help Italy in the same way or not. The role of Germany in this regard will be of much more importance and it will have to play its role of big brother in this situation. There are a number of people in Italy that are considering Silvio Berlusconi, the recent prime minister of Italy, as the cause for this economic downturn. They are saying that Silvio is the main reason why they are in such crisis today. According to them, he did not pay enough attention on maintaining the economic stability of the country and gave other things more importance. Since, now he has resigned, there seem to be much more chances of the economic upheaval of country and it seem to be a sign of hope for other European countries as well.
Tags: Italy, Upheaval, Stability, Resigned, Importance
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Italy Economic Relations
Reason
Posted by:
borsa.tv
Italy is having much better economic relation these days with most of the countries of the world, China being at the top of the list. This is not something new. Since, China and Italy have always had smooth, rather friendly, relations and there have been no mistakes on the foreign relation ends of both the countries. Recently, Premier Wen Jibao visited Italy on October 7th for the 13th EU-China Summit and a number of matters were discussed in it. The Chinese leader was received here in Italy by the Prime Minister Silvio Berlusconi. The Chinese leader was given a warm welcome by the people of Italy and a number of matters, including rising economic and environmental concerns, were discussed. Further increasing the warmth of the relation between the Chinese and Italian people was the inauguration of Chinese culture year which proved to be a friendly bridge between the people of the two countries. According to the experts, this visit of the Chinese leader to Italy will prove to be very fruitful for the people of Italy and specially its industrial sector. Companies like Piaggio and Fiat which are considered to be the best of Italy will really benefit from it. China is one of the most rapidly growing economies of the world and experts have already starting to predict that China is going to be the world’s strongest economy by 2025. The only thing which has made this possible is the effort of the people of China who have depended totally on their own resources and have not called out for help from organizations like IMF, a mistake most of the countries are very happy to commit. The friendly relations between the two countries will create opportunities for the people of two countries and will obviously create a very positive effect on their economies. Cutting long into short, China and Italy both have been very responsible on the matter of their foreign relations and have done everything within their reach to improve their relations with other countries. That is why both of them are economically strong.
Tags: Italy, China, Economic, Foreign, Leader
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Effects of Economy
Reason
Posted by:
borsa.tv
There are a number of ways economic downturn can affect the lives of people living in any particular country. For example, 2008 was one of the worst years in the economy of the world and it is considered the worst economic downturn after since that which was seen in 1930. A number of people ask, why and how does economy get affected? Well, the answer to this question is not that simple and a number of years are required in order to fully understand all the complexities of this field. However, in an overall sense, the basic cause of the economic downturn is poor decision making of some countries or large organisations of the world which influence the market of stock exchange. This in turn, causes the downturn in the economy. When a country starts facing economic downturn, people stop investing in that country. As a result, lack of opportunities occurs for the people living in that particular country. This creates a number of problems for the people of that country and the standard of living of the people start declining. An economic decline is one of the worst nightmares for any country and the economic experts of the country try their best to avoid it. Similarly, an economic downturn can also cause a lot of problems for Gross Domestic Products which is affected by the marketing of daily use or luxury products. When a country is in the condition of an economic downturn, what people really do is that they stop spending their money on luxurious items and spend money only when they really have to. In other words, they concentrate more on saving than spending. This causes the companies of those products to reduce the prices of the items in order to make people buy them and this causes their deflation. This deflation will further reduce the economy of that country and this is the worst case of the economic downturn. Cutting long into short, it is the national responsibility of the experts of any country to remain aware of such conditions and to avoid them as much as they can.
Tags: Downturn, Companies, Prices, Country, Nightmare
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Trusting the Italian Economy
Reason
Posted by:
borsa.tv
The day after European leaders announced their new plan to save Europe's financially precarious situation, which over the past months has spiralled to crisis point, Italy's borrowing costs soared to their highest ever rate during the Euro era. In the past month alone there has been a 0.20 per cent increase on the interest Italy will pay on 10-year bonds, reaching a staggering and record breaking 6.06 per cent.
So what does this mean for Italy? The basic answer is that Eurozone members are not confident in the plan for change that Italy has outlined for the forthcoming months. There is no question that an economic turnaround is needed but the plans show an optimistic target. 120 per cent of Italy's GDP would be required to generate the €250bn needed to finance its €1,900bn debt burden. The possibility of reaching this in the short term is ambitious but not totally beyond reach. However, sustaining this kind of turnover in a long term plan would, according to the experts, require something close to a miracle.
One of the key moves by the Italian treasury is opening the debt up to private investors. Private wealth in Italy is looking healthy at an estimated €8,000 - €9,000bn; this puts it high up in European rankings. But private investment is not a proven method of relieving a countries capital debt with no record of other European successfully implementing such a technique.
Overall Italy looks to be teetering near the edge of a very uncertain financial future, and the question of whether it will follow Greece, Portugal and Ireland over the edge is yet to be answered.
Tags: Italy, Greece, Finance, Eurozone, Debt
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Help the US Economy
Reason
Posted by:
borsa.tv
A recent survey by Fox News revealed that more than half of the Americans would prefer a government shutdown rather than raising the debt ceiling further. The US sovereign debt is fast nearing its ceiling of $14.3 trillion, with the debt increasing at an astounding rate of $14.7 billion per day!
US President Barack Obama is hopeful of striking a deal on the budget. He has warned that a government shutdown can have catastrophic consequences for the economy. Meetings with Republican and Democratic leaders at the White House to discuss the fiscal 2011 budget have not yielded anything substantial yet. There are still uncertainties about ways to bring down the budget, most of which have little hope of finding popular support.
The scenario brought the government close to a shutdown on Friday. If a practical solution to help the US economy is not found out soon then even the stopgap measures to fund the government would be of no help after it expires. We need to wait and see whether the US treasury's debt management plan to save the country from an economic downfall would be fruitful. In times of severe recession that the US is now facing, Obama said that a shutdown was the “last thing” that the US economy needed.
The Democrats and the Republicans are having a hard time striking a deal to address the ever growing fiscal problem. Obama said that John Boehner, Republican Speaker of the House of Representative and Harry Reid, Senate Democratic leader would meet again on Tuesday to continue discussions. If no solution could be arrived at, then Obama would call a meeting in the White House again on Wednesday.
The President announced that he will call meetings and discussions as long as the debt crisis is not resolved. He said that there is also the possibility of negotiating over the composition of cuts.
Perhaps, this is the most precarious situation for the US government. According to Fox News, close to half of the US people hold a low regard for the government and, therefore, they strongly support a government shutdown.
There is a high possibility that the government will raise its debt ceiling further. Whether it would help to control further damage to the economy is something only time can tell.
Tags: Economy, USA, Obama, Government Shutdown
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2050: According to PwC
Reason
Posted by:
borsa.tv
Hong Kong 2010 - Image copyright Shannon Tweedie
For what it's worth, an economic report has been published by firm PwC outlining the possibility of what the world will be like by 2050 using GDP projections.
"To do this, they used World Bank data for growth up until 2009, PwC's short-term projections for the years up until 2014 and their long-term growth assumptions for 2015 to 2050, which rely on assumptions about population growth, increases in human and physical capital, and the rate at which poorer countries can catch up with the more advanced technologies used in developed nations."
In all of the data lies the assumption that the UK will slip further down the list of world's largest economies. It is currently at number seven and is expected to slip down to number 10 by 2050. Though considered an emerging economy, China is set to take the number one spot in terms of capital by as early as 2025. Currently, the US is the number one economy as a G7 nation but could come in second to China.
Other growing E7 economies creeping up the scale are India, Russia, Mexico, Turkey, Indonesia, and Brazil in comparison with their G7 partners: Japan, Germany, Italy, the UK, Canada, and France.
What this means for the world is clear: emerging economies have enormous potential to move in fast-forward motion just as some of their counterparts have done before them, such as Japan and the US.
Tags: Economic Growth, GDP, PwC, World in 2050
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