Post by Admin on Jan 7, 2022 17:04:36 GMT 1
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10 False Myths About the Italian Economy
Compiled by Marco Fortis, Fondazione Edison, with the collaboration of Stefano Corradini and Andrea Sartori. (March 2019)
1. Italy is one of the weakest economies in Europe.
FALSE!
Italy has the second biggest manufacturing industry in the European Union, the largest agricultural sector in terms of value added and the second highest number of nights spent by foreign tourists.
2. Italy is on the list of countries with the lowest growth.
FALSE!
Even if it was true in the past, in recent years Italy’s GDP per capita has grown faster than the G7. Household per capita consumption increased faster in Italy than in many other EU countries including Germany, France, the Netherlands, Sweden, Austria, Belgium and Finland.
3. Italy is not competitive.
FALSE!
Italy has the fifth largest trade balance in the world for manufactured products. And it is the leader or co-leader at the global level for hundreds of manufactured goods.
4. Italian enterprises do not invest enough in equipment.
FALSE!
In recent years Italy’s investment in machinery and transport equipment has grown twice as fast as that of Germany.
5. Italy doesn’t invest enough in research & development.
FALSE!
In its sectors of specialization Italy is a leading country for R&D expenditure. In the European Union, it spends the most on R&D in textiles, wearing apparel, shoes and furniture; and it has the second highest R&D expenditure in the machinery and equipment industry. Furthermore, Italy has the second highest number of Community designs filed by the European Union Intellectual Property Office (EUIPO) in the EU.
6. Italian firms are too small to successfully compete in the era of globalization.
FALSE!
Italy’s small and medium-size manufacturing enterprises export more than those of all other OECD countries, with exports totalling over USD 170 billion.
7. Italy’s specializations in world trade are too similar to those of emerging countries with low labour costs.
FALSE!
Maybe this was true in the past. But Made in Italy is now completely different: it is the top of luxury and quality in traditional goods like fashion, furniture, food and wine. And it is at the top of innovation and technology in machinery and mechanical engineering, transport equipment and pharmaceutical products.
8. In Italy there is great economic and social inequality.
FALSE!
In Italy only 38% of people live in regions with a per capita GDP at purchasing power parity lower than the European Union average, compared to 72% in France, 67% in the United Kingdom and 64% in Spain.
9. Italians pay low taxes and the government balance is in a very bad situation.
FALSE!
Italian tax rates are more or less in line with the European average. And from 1995 to 2018 Italy’s cumulative government primary balance before interest payments reached the level of EUR 724 billion, an absolute record in Europe, well ahead of Germany
10. Italy is too indebted.
FALSE!
Considering private and public debt combined, Italy is less indebted than many other advanced countries. Household debt is one of the lowest globally. The public debt is very high in terms of percent of GDP but it looks more sustainable if compared to the historically high government primary surplus mentioned above and Italian household net financial worth, that is twice as high as GDP. Furthermore, only 1/3 of Italian public debt is financed by foreign investors; the private domestic sector is financially strong and Italy’s net international financial position is only slightly negative (-6% of GDP in 2017) and more comfortable than those of many other important OECD countries.
10 False Myths About the Italian Economy
Compiled by Marco Fortis, Fondazione Edison, with the collaboration of Stefano Corradini and Andrea Sartori. (March 2019)
1. Italy is one of the weakest economies in Europe.
FALSE!
Italy has the second biggest manufacturing industry in the European Union, the largest agricultural sector in terms of value added and the second highest number of nights spent by foreign tourists.
2. Italy is on the list of countries with the lowest growth.
FALSE!
Even if it was true in the past, in recent years Italy’s GDP per capita has grown faster than the G7. Household per capita consumption increased faster in Italy than in many other EU countries including Germany, France, the Netherlands, Sweden, Austria, Belgium and Finland.
3. Italy is not competitive.
FALSE!
Italy has the fifth largest trade balance in the world for manufactured products. And it is the leader or co-leader at the global level for hundreds of manufactured goods.
4. Italian enterprises do not invest enough in equipment.
FALSE!
In recent years Italy’s investment in machinery and transport equipment has grown twice as fast as that of Germany.
5. Italy doesn’t invest enough in research & development.
FALSE!
In its sectors of specialization Italy is a leading country for R&D expenditure. In the European Union, it spends the most on R&D in textiles, wearing apparel, shoes and furniture; and it has the second highest R&D expenditure in the machinery and equipment industry. Furthermore, Italy has the second highest number of Community designs filed by the European Union Intellectual Property Office (EUIPO) in the EU.
6. Italian firms are too small to successfully compete in the era of globalization.
FALSE!
Italy’s small and medium-size manufacturing enterprises export more than those of all other OECD countries, with exports totalling over USD 170 billion.
7. Italy’s specializations in world trade are too similar to those of emerging countries with low labour costs.
FALSE!
Maybe this was true in the past. But Made in Italy is now completely different: it is the top of luxury and quality in traditional goods like fashion, furniture, food and wine. And it is at the top of innovation and technology in machinery and mechanical engineering, transport equipment and pharmaceutical products.
8. In Italy there is great economic and social inequality.
FALSE!
In Italy only 38% of people live in regions with a per capita GDP at purchasing power parity lower than the European Union average, compared to 72% in France, 67% in the United Kingdom and 64% in Spain.
9. Italians pay low taxes and the government balance is in a very bad situation.
FALSE!
Italian tax rates are more or less in line with the European average. And from 1995 to 2018 Italy’s cumulative government primary balance before interest payments reached the level of EUR 724 billion, an absolute record in Europe, well ahead of Germany
10. Italy is too indebted.
FALSE!
Considering private and public debt combined, Italy is less indebted than many other advanced countries. Household debt is one of the lowest globally. The public debt is very high in terms of percent of GDP but it looks more sustainable if compared to the historically high government primary surplus mentioned above and Italian household net financial worth, that is twice as high as GDP. Furthermore, only 1/3 of Italian public debt is financed by foreign investors; the private domestic sector is financially strong and Italy’s net international financial position is only slightly negative (-6% of GDP in 2017) and more comfortable than those of many other important OECD countries.