The Italian economy must aim for growth. The picture that emerges from the latest Bank of Italy data confirms the concerns that drive the government to make reform after reform. The GDP is in sharp decline (-2,6% in the fourth quarter of 2011 compared to the same period of the previous year), as well as industrial production and order trend. Since the beginning of the year, the balance of payments has slightly improved (-8 billion euros in January 2012, against -8,7 in the same month of 2011). As for thepublic administration debt, government projections are confident and predict a decline, but the trend throughout 2011 was upwards.
From a financial point of view, there was a positive turnaround in November 2011: the yields of all government bonds (minus those at variable rates which start declining from December) they started a sharp descent. Consequently so too spreads with Bunds German ten-year bonds has moved away (albeit with some second thoughts at the beginning of the year) from the dreaded 500 points threshold.
Even Piazza Affari breathed a sigh of relief from the change of government. Since November 2011, the share price has begun an upward trend.
Download the graphs prepared by the Bank of Italy
Attachments: iteconom_59_Bankitalia.pdf
