Italian double pressure-bearing, both exists advantages and disadvantages
A number of data show that the economic risk of Italy, the third largest economy in the Eurozone, remains the same. In 2019, it will remain a major hidden danger in the Eurozone. According to reports, the current Italian economy is under pressure from both inside and outside. On the one hand, this export-oriented country is facing a slowdown in external demand; on the other hand, Mini Electric Scooter Manufacturer in China the implementation of the domestic joint government budget is full of challenges. According to the latest statistics from the Italian official statistics agency, the unemployment rate in the country rose slightly in January this year, and the economic growth rate in 2018 fell to 0.9% from 1.6% in the previous year. Lange, an analyst at the agency IG, said that although Italy’s 10-year bond yields have dropped significantly, the market is not stable under internal and external pressure. The European Commission recently released an annual assessment report on the economic and social conditions of EU member states, pointing out that the current Italian government budget is deteriorating, the reform process is stagnant, and it will have a negative impact on productivity, GDP growth and public finance sustainability, and its economic development prospects are not allowed. optimism.Mini Electric Scooter Suppliers in China
The report also pointed out that Italy’s high public debt and long-term weak productivity have constituted cross-border risks for its EU neighbors and characterized the Italian economy as ”excessive imbalance”, which is the worst degree in the EU’s economic evaluation system for member states.
In October last year, due to Italy’s insistence on increasing the fiscal deficit to GDP ratio, the EU had turn down the budget case of Italian 2019 at the first time. At that time, the EU pointed out that Italy’s debt to GDP ratio reached 131.2% in 2017, equivalent to 37,000 euros per person. The interest expense for the year was about 65.5 billion euros, equivalent to 3.8% of GDP. In addition, according to the latest data released by the European Central Bank, Italian banks bought a total of 11 billion euros of Italian government bonds in January 2019. This is the largest monthly purchase of Italian banks since the Italian bond plunged last June. However, in December 2018, here Italian banks also threw a total of 17 billion euros of Italian government bonds. The Italian economy and sovereign debt situation will have an important impact on the euro zone banking industry, because in addition to the domestic financial institutions holding more than 200 billion euros of bonds, BNP Paribas and the French Agricultural Credit Bank also hold a total of 250 billion euros of Italian sovereign debt. Previously, Italy had predicted that its public debt would continue to decline in 2019, but the latest EU report concluded that the domestic public debt in Italy will continue to rise. The data shows that as of December 2018, the Italian public debt scale was 2,316.7 billion euros.