Italy is in a very clear credit crisis situation, remains in recession this year, and can expect the beginning of a weak recovery in 2014, stated Jean-Michel Six, the chief economist of Standard & Poor’s (S&P) for Europe.
According to him, 2013 will be another year of recession for the Italian economy, which S&P predicts will decline by 1.5 percent this year. “In 2014, we will witness the beginning of a very weak recovery. The basis for a real recovery can primarily be created by clear coordination of monetary, banking, and fiscal policy (in the eurozone),” Six told participants at a conference in Milan. The Italian credit crisis is spreading, affecting not only medium and large companies but also small businesses, stated S&P’s director for corporate ratings in Italy Renato Panichi.
-Until now, the difficult access to credit has mostly affected medium and large companies, but now it has become a problem for everyone- he noted. Personal consumption is subdued in recession-hit Italy, and in April it decreased by 3.9 percent compared to the same month last year, reported the Italian association of small retailers Confcommercio. This marks the 17th decline in personal consumption in the last 20 months.
