Brexit, the economy and house prices (Part 3)

Thrugelmir

kabayiri wrote: »

As an outsider I struggle to see why Italy is not a bigger economy than they currently are.

The culture. Such as the M A F I A. May not hit the news as they once did. However in many aspects of daily life still hold considerable influence.

.

cogito

mayonnaise wrote: »

One month's figures??
Here's the 5 year graph.



I'll leave it to you to identify the trend here.

So tell me. Is the UK's good economic performance because of the EU and if it is, how do you explain the fact that Italy has had zero GDP growth since inception of the euro?

fatbeetle

mayonnaise wrote: »

One month's figures??
Here's the 5 year graph.



I'll leave it to you to identify the trend here.

You obviously are unaware of the difference between "manufacturing" and "GDP". GDP is what was under discussion.

mayonnaise

fatbeetle wrote: »

You obviously are unaware of the difference between "manufacturing" and "GDP". GDP is what was under discussion.

Italian industrial production is the topic since post 139. The graph you quoted above also says 'Italy Industrial production'. Really, it's not that difficult. Try to keep up.

Your GDP graph is interesting. Is there any reason why the X-axis ends in 2011, slap bang in the middle of the GFC?

cogito

mayonnaise wrote: »

Italian industrial production is the topic since post 139. The graph you quoted above also says 'Italy Industrial production'. Really, it's not that difficult. Try to keep up.

Your GDP graph is interesting. Is there any reason why the X-axis ends in 2011, slap bang in the middle of the GFC?

Is there any reason why the graph you posted at #150 started at 2012 just after the Italian economy passed its nadir?

vivatifosi

kabayiri wrote: »

As an outsider I struggle to see why Italy is not a bigger economy than they currently are.

Thrugelmir wrote: »

The culture. Such as the M A F I A. May not hit the news as they once did. However in many aspects of daily life still hold considerable influence.

.

While the m a f i a has historically been a problem, I think it is more likely to be the structure of its corporates.

Although Italy does have some big multinationals, Fiat being a prime example, it has far fewer than other largely northern European countries, plus the USA, Japan, S Korea, etc.

The same goes for other southern European countries... how many Greek or Portuguese multinationals can you name?

I remember studying this phenomenon many years ago as part of an international business course. This article is a bit old, but does discuss the problem in more detail:

http://www.slate.com/articles/business/small_business/2012/07/the_small_business_problem_why_greece_italy_and_spain_have_too_many_small_firms_.html

Ronaldo_Mconaldo

I thought Italy was in a bad state because of the rising number of older people and falling birth rates along with younger people leaving the country at the earliest chance.

Thrugelmir

vivatifosi wrote: »

Although Italy does have some big multinationals, Fiat being a prime example, it has far fewer than other largely northern European countries, plus the USA, Japan, S Korea, etc.

Fiat has it's headquarters in London.

Now part of a far larger group.

Mortgagefreeman

No doubt with all this good news coming out of Italy, they'll all be switching from Fiats to Ferraris.

fatbeetle

Italy is a role model of what can be achieved under the aegis of the monstrous EU bureaucracy..

Italy’s economy has shrunk by around 10 per cent since 2007, as the country endured a triple-dip recession.

Output has regressed to levels of over a decade ago. Overall unemployment is around 12-13 per cent, with youth unemployment around 40 per cent. Consumption and investment are flaccid.

The damage is long term, with as much as 15 per cent of Italian industrial capacity destroyed, reducing employment and growth potential. Once its strength, Italy’s smaller enterprises have contracted as a result of low sales, declining profitability and lack of financing.

Italy has a current account surplus of 1.9 per cent, reversing a number of years of deficits. The change reflects the deterioration of the Italian economy rather than a change in its trading position.