After the Crisis: Assessing the Damage in Italy

 
Author/Editor: Silvia Sgherri ; Hanan Morsy
 
Publication Date: November 01, 2010
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Italy’s deep-rooted structural problems resulted in an unsatisfactory productivity performance and a dismal growth over the last 15 years. The global financial crisis has exacerbated these long-standing weaknesses, taking a heavy toll on Italy’s economy. With output back to its end-2001 level, Italy’s output losses associated with the crisis have been, thus far, about 132 billion of 2000 euro (around 10 percent of precrisis 1998 - 2004 real GDP). About three quarters of these losses are estimated to be due to a shortfall in potential output. Potential output is not expected to rebound to its precrisis trend over the medium term, even though growth is projected to do so within the next two years. In the short-run, the decline in output is mainly accounted for by a collapse in productivity; in the medium term, employment and capital are also likely to be affected, with implications for the longer-term growth and fiscal outlook.
 
Series: Working Paper No. 10/244
Frequency: Biannually
Subject(s): Global Financial Crisis 2008-2009 | Italy | Economic growth | Labor productivity | Production growth | Financial crisis | Productivity

 
English
Publication Date: November 01, 2010
ISBN/ISSN: 9781455209446 Format: Paper
Stock No: WPIEA2010244 Pages: 244
Price:
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