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Article: PESSIMISM ABOUT ITALY'S FUTURE GROWS.(Brief Article)
- Article from:
- Market Europe
- Article date:
- January 1, 2005
CopyrightCOPYRIGHT 2005 Media Contact Resources, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Italy has fallen behind its European Union (EU) partners in GDP growth, and shows few signs of being able to catch up. Italy is the third largest country among the 12 EU nations who have adopted the Euro, and Italy accounts for approximately 20 percent of the Euro Zone's GDP. To explain why Italy's performance has been lacking, Morgan Stanley in a posting on its Global Economic Forum in mid-December 2004, looked to structural weaknesses in Italy's economy.
One of the more serious weaknesses, said Morgan Stanley, is Italy's apparent difficulty in combining job growth with gains in productivity. This is a double blow to consumption spending since unemployment and ...