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What Are the Challenges Faced by the Italian Economy Going Forward and What Are the Interventions Required to Address These Challenges? Essay

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Below is an essay on "What Are the Challenges Faced by the Italian Economy Going Forward and What Are the Interventions Required to Address These Challenges?" from Anti Essays, your source for research papers, essays, and term paper examples.

Introduction

5 years since the height of the Global Financial Crisis, Italy’s economy continues to contract despite still being ranked the 8th largest economy in the world and 3rd biggest in the European Union by the IMF, 2014. Italy continues to face major challenges that, without intervention, will continue to see it stagnate and risk defaulting (Cencig, 2012).

The GDP of Italy has continued to decline since mid 2007, with only a short period of growth early 2010, and public debt has increased to unsustainable levels. This persistent trend is a key indicator that the health of the Italian economy hangs in the balance with public debt sitting in excess of 131% GDP (World Bank, 2014). With a shrinking economy, the heavily imbalanced labour market continues to grow as SME’s, a driver of economic activity in Italy, become less confident (2014a) as consumption falls and credit becomes ever more difficult to secure (Neri, 2013). Political instability and corruption prohibits sound fiscal management while also acting as sentimental barriers to entry for large multinationals and foreign investment (Roe and Siegel, 2011). These 3 key factors are major challenges that Italy must surmount to return to international competitiveness.

Not all is lost for the fashion powerhouse of the world. Italy continues to foster excellence in design, luxury goods and services, food and beverage and tourism amongst other things. They also maintain high private wealth; good quality of life and an entrepreneurial spirit that could see them make a strong recovery to growth.

There are however a number of interventions that must take place to ensure a return to financial stability. The government needs to pass reforms that will stimulate economic growth. Tax reforms and an easing of labour laws will inject much needed confidence into the corporate sector (hiring, 2014, Tyson, 2014). Further, attracting foreign investment by ensuring political stability and riding the country of...

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MLA Citation

"What Are the Challenges Faced by the Italian Economy Going Forward and What Are the Interventions Required to Address These Challenges?". Anti Essays. 12 Dec. 2018

<http://parimatch-stavka7.com/free-essays/What-Are-The-Challenges-Faced-By-758985.html>

APA Citation

What Are the Challenges Faced by the Italian Economy Going Forward and What Are the Interventions Required to Address These Challenges?. Anti Essays. Retrieved December 12, 2018, from the World Wide Web: http://parimatch-stavka7.com/free-essays/What-Are-The-Challenges-Faced-By-758985.html


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