Question

how coronavirus effect italian econamy ?

Answer 1

Northern Italy is at present the origin of Europe's COVID-19 outbreak. As a result of the latest coronavirus 17 Italians have died so far and 650 have been infected. Schools have been shut down in the area, colleges have cancelled classes, businesses have asked their workers to operate from home, and many theatres, cinemas and bars are closed. The virus has caused the cancelation of the Venice Carnival's last two days which attracts thousands of visitors each year. And the region south of Milan, where they registered the first COVID-19 cases in Italy, is under quarantine.

Epidemics are not recent in Northern Italy, which during the Middle Ages and the Renaissance was at the center of trade routes. Venice was in reality the first town to establish methods for preventing and treating virulently infectious diseases. The authorities then isolated people with symptoms in lazarets (ships permanently at anchor and used for quarantine) on islands outside the city, and limited healthy Venetians' movements and interactions during a 40-day quarantine period.

Modern medicine and a healthy standard of living have dramatically decreased disease incidence, drastically slowed contagion rates, and slashed mortality levels. Currently, COVID-19's total mortality rate is about 34 per thousand, with elderly people and those with health conditions most at risk. In contrast, epidemics in early modern Northern Italy had death rates of 300–400 per thousand.

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.

Meanwhile, the epidemic would have a significant effect on the Italian economy, and it is likely to send it into recession. Northern Italy is the economic engine of the country, with a GDP per capita of around €35,000 ($38,000) – compared to the national figure of €28,000 – and an employment rate of 67 per cent (compared to 59 per cent nationwide). Yet big trade events such as the Milan Furniture Fair were cancelled or postponed, business trips were scrapped and confusion is rife. In addition, virus-related cancelations are already hitting the tourism industry in the region, which accounts for 14 per cent of GDP.