April 19, 2017 – Rai Radio 1 aired an interview with SEP Director Marcello Messori, in which he discusses the IMF’s new estimate for Italian GDP. Compared to the rest of the euro area, Italy is predicted to lag behind both in terms of economic growth and unemployment. Messori argues that this stems from two principal factors—the country’s manufacturing dynamics and the high level of public debt. These problems also feed into each other. The high level of sovereign debt impedes public investment to restructure the economy, as well as discourages private investment from elsewhere. Without these injections, it is difficult for innovation to flourish, hurting productivity. Unless this vicious cycle can be broken, Italy will continue to have problems connected to growth, which has become a chronic issue.
- The original interview (in Italian) is available from Rai Radio 1.