Economy in Italy

[headyheady]

Is it true that the outlook for the economy throughout Italy is poor. I spoke to a few people while I was there recently and they say that alot of people especially those living in the big cities are living hand to mouth. They can afford very little - are not even able to go out for a pizza once a week. Seems strange when it is such a rich country. Maybe we on this forum could have a discussion about this.

[Nielo]

Where I am, in rural Italy, they are tightening their belts but it is not so bad. Most people out here are relatively self sufficient (at least for vegetables, eggs etc) and the credit crunch has not hit in the same way because they use very little credit and mostly own their houses mortgage free.

Someone I know is buying their fourth house because he doesn’t trust the banks and puts any savings into property.

From what I hear on the news things are getting very rough in the UK where the economy is much more credit based and personal borrowing is much higher. I suspect that this is the problem in Italian cities too.

Perhaps it is just that this area is already poor and living hand to mouth is the normal way of things, you don’t miss what you never had.

[NickZ]

Energy is up [car,electric,natural gas]
Food is up
If you have an adjustable mortgage your payment is up.

All this while salaries are flat.

[giovanni]

Originally Posted by headyheady

Is it true that the outlook for the economy throughout Italy is poor. I spoke to a few people while I was there recently and they say that alot of people especially those living in the big cities are living hand to mouth. They can afford very little - are not even able to go out for a pizza once a week. Seems strange when it is such a rich country. Maybe we on this forum could have a discussion about this.

And things are looking so much better here in the UK,just a short time ago,we were being told there was a house shortage[yea right] now the building trade is in sharpe decline[thousands being laid off!] house prices have follow drastically already as bad as 1991! seems strange when we live in such a rich country!!!!!!

[Charles Phillips]

It does seem rather unfair that Italy is caught up in the global recession, haven never experienced the 'benefits' of the global boom. In my opinon, Italy should have (politcians willing) at least enjoyed living the con-trick of the boom years: but that didn't happen, and in quite a few ways Italy is at least way ahead of the game fundamentally.

Italy's problems are deep rooted, mainly (IMO) connected with the way politicians have run the country, but the problems are ones which have been addressed in many other countries, and seem to be being addressed now in Italy (not particularly by Berlusconi, he is benefitting from stuff which Prodi's lot started).

I have much more faith in the future propects of Eurozone countries than I have in the future of the fly-by-wire 'economy' of the UK. Smoke and mirrors.

[Gala Placidia]

During our recent stay in Italy, I noticed that all prices have gone up, in general. Still, some things such as a cup of coffee (unless you insist on sitting at a table in Piazza della Signoria in Florence or St Mark's at Venice) are more than reasonable. From our observations, real estate sales are slower and new constructions seem to take longer to complete than before; however, the Italians seem to believe that the British and the Americans will buy at any price.... they seemed to be greatly surprised when we told them that both the Pound and the Dollar have lost much of their value against the mighty Euro....

[fab1985]

According to Brown, the British economy is in a better position to weather the storm than most countries (No Comment)
Italy's problems like already mentioned are deep routed. I feel half the problem is that Italy and Italian's don't take seriously new regulations. This comment could be said for the judicial system where rules tend to be put aside. There is always alot of comments and debates of what needs to be done rather than actually going and completing the task.

[johnt5152]

In my humble opinion we ain't seen nothing yet, oil prices have doubled in the last year, the effects of which have yet to really filter down. In my area there is still a lot of new construction which can really drive an economy, but like has happened in Spain when the buyers dry up the whole economy can quickly get into trouble. In 2007, before the inevitable "credit crunch" Italy was one of very few EU economies with zero or minus growth I.E. In recession.
Having said all that, does it really matter? Sure cost of livng is on the increase, but the wines still really cheap, the sun is shining and life is good.....

[Carole B]

Originally Posted by Gala Placidia

During our recent stay in Italy, I noticed that all prices have gone up, in general. Still, some things such as a cup of coffee (unless you insist on sitting at a table in Piazza della Signoria in Florence or St Mark's at Venice) are more than reasonable. From our observations, real estate sales are slower and new constructions seem to take longer to complete than before; however, the Italians seem to believe that the British and the Americans will buy at any price.... they seemed to be greatly surprised when we told them that both the Pound and the Dollar have lost much of their value against the mighty Euro....

My 'company pension' is paid directly into my Italian bank account every month and in the last 9 months it has lost 22.4% of it's value through high exchange rates. I have to ensure that I can live on that as it's my only icome in Italy. So these days I have to be more careful that usual - no waste and only buy things if I need them... Thank goodness my small British state pension is paid directly into a building society and taxed there.

[Gala Placidia]

Sorry to hear, Carole, but most of us in a similar situation. Our bank funds and investments have lost a third of their value over the past 6 months. The only thing we can do is wait and see whether they will eventually recover over the next few months without having to sell and loose...
On the other hand, I heard recently, both in Italy and in Spain, that the construction industry is booming in Eastern Europe, particularly in Rumania and Bulgaria and many nationals from those countries are returning to their place of origin because work is scarce in Western Europe.... Even Italian and Spanish building companies are tendering to do work there....