Italy falls back into recession

[4me2]

Italy falls back into recession


Italy's economy shrinks - the latest figures were weaker than expected

Italy's economy has fallen back into recession, latest official figures show, after contracting for two quarters in a row.
GDP, the value of all the country's goods and services, shrank 0.2% in the second quarter of the year.
The surprisingly weak number follows a 0.1% contraction in the first quarter.
Economists consider two quarters of shrinking GDP means a country is in recession.
At the end of last year the country appeared to be emerging from recession, growing fractionally in the last three months.
But since then the numbers have been getting worse.
Speaking before the release of the latest figures, Hetal Mehta, European economist with Legal & General Investment Management, told the BBC: "Italy has a huge pile of government debt and they need growth to bring that debt stock down, so having such weak growth figures is a major setback."
But the Bank of Italy said last month that GDP had contracted by 9% since the global financial crisis began in 2007.
Separate figures showed industrial output increased by 0.9% from May to June, the biggest increase in five months.

Reforms
This latest unexpected contraction in GDP is a blow to Prime Minister Matteo Renzi, who came to power in February promising to reform and revive the economy.
But the reforms have so far been limited to a tax break for low income workers.
Ms Mehta said: "If you compare it to a country like Spain, which underwent a huge amount of austerity but at the same time carried out labour market reforms, Italy ... hasn't done as much and you see the difference in growth rates that are starting to come through."
Government projections for 2014 put economic growth at 0.8% this year, with a deficit of 2.6% of GDP.
But without a recovery, there is speculation the government may need another budget to keep the deficit below the European Union's ceiling of 3% of GDP.

http://www.bbc.co.uk/news/business-28671107

[Ginnerfreak]

We have been fortunate to have the current economic policy expertly managed by the conservative party and their slashing of the lazy work-shy government quangos, public spending, benefits reduction and investment in manufacturing and construction.

This shows that without austerity measures growth is impossible.

[blaggard]

Not to mention yet another housing bubble. . .

[4me2]

We have been fortunate to have the current economic policy expertly managed by the conservative party and their slashing of the lazy work-shy government quangos, public spending, benefits reduction and investment in manufacturing and construction.

This shows that without austerity measures growth is impossible.

The only growth that Comes from Austerity measures is the rich grow richer at the expense of the working man.

[blaggard]

We never have actually come out of recession any way, a housing bubble and manipulation of the figures have got people believing in something which just does not exist outside the Accountants balance books.

[corskey]

We never have actually come out of recession any way, a housing bubble and manipulation of the figures have got people believing in something which just does not exist outside the Accountants balance books.

as your signature says

If at first you don't succeed.....redefine success. . . .

[DavidF]

We have been fortunate to have the current economic policy expertly managed by the conservative party and their slashing of the lazy work-shy government quangos, public spending, benefits reduction and investment in manufacturing and construction.

This shows that without austerity measures growth is impossible.

I was actually so saddened with this post when I 1st read it I really could not reply. I could write a full page or more about why your theory (And this government's) is wrong and the "better" ways that they could spend the tax they collect and how they could raise more tax without really hurting the man in the street and boost the economy with the investments they make.......But unfortunately my ideas would not make multi national companies billions and would upset the lobbyists that basically control westminster.
One thing I will say though - I am so glad that the right wing politicians have managed to push their agenda so well through the right wing dominated press. It's taken 30 years but it really does seem to be mission accomplished.
This was from 2006 - it's even worse now btw

The survey showed that 54% of the top 100 newspaper editors, columnists, broadcasters and executives were educated privately, despite fee-paying schools catering for 7% of the school population

Earlier studies by the trust, which aims to widen educational access, showed that 70% of barristers in the top chambers had attended fee-paying schools, and a third of MPs. Supplemented by background discussions with newspaper editors and broadcasting executives over their recruitment policies, the study also showed that only 14% of the top 100 attended a state comprehensive, collectively responsible for the education of nine in 10 British children. Coulson, the Daily Mail's Allison Pearson, the Guardian's Polly Toynbee, Five News anchor Kirsty Young and ITV News editor Deborah Turness were among the few who did. Most of the rest of those with a state education went to grammar schools, the decline of which was highlighted as one of the main reasons for the fall in the number of journalists from non-fee-paying schools.

The survey also revealed that of the 81% who had been to university, more than half of the leading journalists went to Oxbridge. One in three went to Oxford.

[supraman54]

We have been fortunate to have the current economic policy expertly managed by the conservative party and their slashing of the lazy work-shy government quangos, public spending, benefits reduction and investment in manufacturing and construction.

This shows that without austerity measures growth is impossible.

How convenient we are fed that information in the run up to a general election.. or maybe I am naturally cynical

supe

[BigBrand]

"Austerity measures" breed greed, and greed breeds politicians, and they're all fucking lairs.


Viva la revolución!!!


Italy, along with numerous other European and international countries have suffered, for a long time. Ask the people who form the backbone. We don't need some fat cat in Canary Wharf smashing figures to tell us that.

Get yourself on the street, speak to the people, this is the most accurate reflection of modern culture and understanding of financial institutions.

Until those who are able to change things, and understand why change is needed, we're always going to be in "recession".