BUSI2034 Lecture Notes - Lecture 5: Think Small, Franchising, European Single Market
Document Summary
Negative: #3 economy in eurozone, 12th in world, advanced economy technically, 8th largest exporter in the world, high standard of living, 3rd net contributor to the eu, private wealth, large manufacturing industry. Italy"s debt is/has been larger than the whole economies of ireland, portugal, and. The euro zone simply might not have the political will or financial resources necessary to backstop those enormous obligations: blame the debt. Italy"s debt ratio is the 2nd worst in the euro zone, behind only greece. Italy has shouldered debt-to-gdp ratios well above 100% for about 20 years now, thanks largely to a government spending binge way back in the 1980s. Low deficits kept the size of the debt stable, and an expanding economy, aided by moderate inflation, made it possible to finance interest payments on what the government already owed. Starting in 2001, italy"s gdp growth plunged below zero during the global recession and has barely recovered since.
