Friday, May 8, 2015

Istat confirmed the flop of Renzi GDP up only 0.7% – The Time

Palazzo Chigi - Council of Ministers

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Italy grew less than the average of EU countries but despite the tight positive sign, Istat rejoices with the result and speaks of the end of the recession. The Institute of Statistics, in line with a report in the Def (Document of economics and finance), provides for an increase in GDP of 0.7% to be followed by growth del’1,2% in 2016 and 1, 3% in 2017.

There are brilliant results for the labor market. The government measures are not producing the desired effects. In 2015 employment will rise by only 0.6%. Although the Jobs Act, the unemployment rate will amount to 12.5% ​​this year and will fall in a really insignificant to 12% next year and to 11.4% in 2017.

You move upwards, but so also the weak trend in consumption. Quest’annno will record a growth of 0.5%, favored, says Istat, “as a positive development in disposable income and the gradual increase in employment.” The savings rate will amount slightly above the values ​​of 2014. In the following two years, the rise in compensation of employees, combined with a recovery in employment, “will continue to support private consumption will increase by 0.7% in 2016 and 0.9% in 2017 “.

Deflation should be behind. Inflation will mark a moderate recovery in 2015 (+ 0.2%). In the absence of the application of the safeguard clauses relating to excise duties and VAT rates, in 2016 inflation is expected to average 1.4% while in 2017 will amount to a value just above. According to the institute, in 2015, the relative stability of the monetary and financial markets will promote the improvement of access to credit.

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Leonardo Ventura

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