Question

Give a brief description about current economic environment of Italy

Outline is better

Answer 1

Italy's economy consists of a prosperous industrial north, dominated by private companies, and a less-established, heavily subsidized agricultural south, with a history of unemployment and underdevelopment. In large part, the Italian economy is powered by the manufacture of high-quality consumer goods manufactured by small and medium-sized enterprises, many of which are family owned. Italy also has a large underground economy that, according to some figures, accounts for up to 17 per cent of GDP. Such practices are most prevalent in the farming, building, and service sectors.

In Italy, the overall level of business sophistication is strong, and there is an open attitude towards foreign investment, with a range of development agencies at both national and regional levels, as well as various trade organizations offering support to approach potential Italian partners. On the other side of the coin, the Italian market climate has some negative aspects as well. Three key factors combine to build what could be described comfortably as a "challenging" business environment: national debt, bureaucracy and the rigid labor market.

Key public policy goals are to handle essential risks and improve resilience. Even though the death rate is small, an outbreak of highly infectious flu in a heavily populated region needs to be controlled as an epidemic could trigger the failure of hospitals and health care services in several countries. And as with financial crises, avoidance of a crisis is often safer than facing one, since the latter entails tremendous economic, social and political costs.

Epidemics impact different countries in various ways, and national politicians need to adapt their responses to that. Simultaneously, policymakers should organize steps to protect health-care staff and disadvantaged persons and nations. The lesson from Italy so far is that a lack of cooperation between local governments, combined with political instability, endangers all containment initiatives by encouraging more people to flee the worst-affected regions. For example, a lot of university students have already returned from northern Italy. So in one case, containment strategies can only succeed in moving the issue elsewhere.