Italy Slides Into Recession as Europe Stalls, Stoking Global Fears
Italy's economy is experiencing a significant slowdown as GDP decreased for the second quarter in a row. The government carries one of the highest debt loads in the world and is at risk of default. China's woes are hurting their economy and Italy has now entered a recession for the third time since 2008. Consumer spending is the leading factor for the economy's slowdown. The populist government in Italy has come under criticism for their economic policies at home. The government increased spending on boarder welfare and pension programs and assured much higher growth. In addition to struggling with growth, Italy's economic system is having issues with stability. The economy has entered into recessions three times since 2008 and major political divides are having a negative impact on Italy's economic outcomes.
https://www.nytimes.com/2019/01/31/business/italy-recession-europe-slowdown.html
1 comment:
It seems like Italy's problems are a result of their government and it's lacking organization. Moving forward, I wonder if it will be possible for them to turn it around on their own as the ECB is offering them less help than they have in the past. If they continue to experience slow growth and are unable to pull themselves out of yet another recession, I am curious to see what measures they will have to take or what help they will need to receive in order to stabilize their economy in the long run.
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