Economy in Italy Essay Example | Topics and Well Written Essays - 1000 words

Economy in Italy - Essay Example S&P revised its estimates based on the GDP in Italy which show only an average growth of .7% between 2011 and 2014 which is much lower than what was projected in previous information that the growth would be somewhere around 1.3%. With the upward pressure on the funding costs in private and public sectors and a dampened external demand, in addition to austerity measures that have been put into place by the government, it is likely that the growth will far less than was previously predicted (Ellis). Italy appears to be in trouble and this does not bode well for the next three years. The nation has a great number of resources where its history is concerned, but it appears that its present is in a conflicted state that might make visiting the nation a more difficult or less appealing prospect. With the turmoil in the government, it might be wise to assess the current state of affairs before visiting the country as well as assess the stability of the Euro as it is used in the nation. Showing that the news is ever evolving and connected, Dominic Rushe wrote an article about the economic conditions in Italy in relationship to the way it will affect the entire European economic situation. The credit rating service Moody’s has been the second service in a few weeks to downgrade the Italian rating, creating problems for the idea of lending to the nation and increasing the costs of borrowing for the state. Moody’s stated that it cut the rating because â€Å"sustained and non-cyclical erosion of confidence† (Rushe). An interesting point was made by Italy’s Prime Minister Silvio Berlusconi who â€Å"criticised Moodys rival Standard & Poors when it cut Italys credit rating last month, saying the ratings agencys action was "dictated more by newspaper stories than by reality" (Rushe). This commentary furthers the idea that much of the economy is