Economic Growth and Challenges - By: Sophia Dobrinz
Reflection of The Per Capita
- Venice Film Festival- one of the oldest international film festivals in the world
- National ,world cup winning, soccer team- brings in fans and spectators
- Bed and breakfasts- attract Italians as well as tourists and offer traditional cuisine
- Beach and Seaside Resorts- Attracts many people especially in the month of August
- Dolomites Mountains- Popular in the winter for skiing
- Canals in Venice- attract many tourists to the city
- Vineyards- people take tours and buy/sell wine
- Refugee crisis- putting a strain on the economy
- Bad bank loans- Hurting economy and GDP
- Museums and Art work- Bring in money and tourism
Article One- "An Audacious Plan to Reboot Italy's Economy"
This article is highlighting the fact that Italy's prime minister, Matteo Renzi, is concerned about the country's banks and economic system and plans to do something about it. Italy has been going through a recession for the past three years and the banks and bad loans have primarily been the cause. The article also brings to light the public debt fell to $2.47 trillion and when measured against the GDP, "it’s still the single currency club’s second-biggest after that of Greece". It also mentions that the GDP rose 0.8 percent last year and will grow about 1.4 percent this year. According to the article, Italy is trailing behind all Euro nations when it comes to GDP except for the countries of Greece and Finland. Overall, Renzi is addressing the problem by encouraging mergers and acquisitions and speeding up the bad loan market in hopes of turning the economy around.
Article Two-"Italy Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption"
This Article explains Italy's economic stance as well as how the economy got to the point in which it is today. In Italy government spending equals about 51% of the country's total GDP while public debt exceeds 130% of GDP. The article also explains how even though the deficit remains high it has been reduced by recent spending cuts. Spending cuts as well as a country's debt and government spending all relate to GDP because in order to calculate GDP one must look at not only the income but also the money that is being lost.
Currently, Italy best fits on the recession and possibly even expansion when comparing its economy to the business cycle. The reason it is placed here is because for the past three years the country has been in a recession but is now trying to get back on its feet which isn't a signal of total expansion, but is the same idea.
- Could help lead to better productivity in the work force through the use of new technologies.
- These increases in technology help to stimulate the economy further by allowing workers to gain capital
- This in turn helps boost the economy through more efficient means of production
- Capital deepening could be one of the main factors that allows Italy to get out of its recession completely
Savings & investments
Having more savings in the country would help lead to funds for businesses
This could in turn help stimulate the economy further through business growth
Investments in businesses help also with GDP
Create more money and help the economy flourish by starting to eliminate the bad bank loans that encouraged the recession.
Advances in technology could benefit the Italian economy by making it more efficient
Productivity would also soar as new technologies are implemented
In turn, new technology would help increase captial, therefore promoting capital deepening
Technology would also help Italy keep Italy connected and up to date, therefore helping boost the economy financially