IFP Info - News
  • Agrofood
    • All
    • Agriculture
    • Environment
    • Food

    Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Egypt’s food industries contribute 24.5% of GDP

    Egypt’s food industries contribute 24.5% of GDP

    $36mln contract for construction of Duqm fisheries complex

    $36mln contract for construction of Duqm fisheries complex

    Ministry signs agreement to support Oman’s honey industry

    Ministry signs agreement to support Oman’s honey industry

    Local, Italian companies partner up to establish food retail chain in Egypt

    Local, Italian companies partner up to establish food retail chain in Egypt

    Trending Tags

    • Business & Economy
      • All
      • Business
      • Economy
      • Finance
      • Industry
      • Technology
      • Trade
      • Transport & Logistics

      Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

      Egypt’s food industries contribute 24.5% of GDP

      Egypt’s food industries contribute 24.5% of GDP

      Profits at top Saudi banks jump 17.6% in Q1

      Profits at top Saudi banks jump 17.6% in Q1

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      New study reveals that UAE is most competitive economy in the Arab world

      New study reveals that UAE is most competitive economy in the Arab world

      Trending Tags

      • CES 2017
      • Election Results
      • eSports
    • Construction
      • All
      • Infrastructure
      • Real Estate
      Oman Construction Equipment Industry to 2028

      Oman Construction Equipment Industry to 2028

      $36mln contract for construction of Duqm fisheries complex

      $36mln contract for construction of Duqm fisheries complex

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      Madayn working on major Oman industrial city projects

      Madayn working on major Oman industrial city projects

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Iraq set to award new Faw Port deals

      Iraq set to award new Faw Port deals

      Trending Tags

      • Energy
        • All
        • Oil & Gas
        • Power & Electricity
        • Renewable Energy
        Suez Canal expects US$3.5 billion in revenues in H1

        Suez Canal expects US$3.5 billion in revenues in H1

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Investments in renewables in Egypt reach LE6 bn: Official

        Investments in renewables in Egypt reach LE6 bn: Official

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        JGC lands $3.7bn Iraq refinery upgradation project deal

        JGC lands $3.7bn Iraq refinery upgradation project deal

        Trending Tags

        • Hospitality

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

          Qatar’s hospitality sector peaks despite turbulent 2020

          Qatar’s hospitality sector peaks despite turbulent 2020

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Staycations to stimulate Qatar’s hospitality sector

          Staycations to stimulate Qatar’s hospitality sector

        • IFP Events
          • Event News
          • Upcoming Events
        • العربية
        No Result
        View All Result
        • Agrofood
          • All
          • Agriculture
          • Environment
          • Food

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Egypt’s food industries contribute 24.5% of GDP

          Egypt’s food industries contribute 24.5% of GDP

          $36mln contract for construction of Duqm fisheries complex

          $36mln contract for construction of Duqm fisheries complex

          Ministry signs agreement to support Oman’s honey industry

          Ministry signs agreement to support Oman’s honey industry

          Local, Italian companies partner up to establish food retail chain in Egypt

          Local, Italian companies partner up to establish food retail chain in Egypt

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics

            Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

            Egypt’s food industries contribute 24.5% of GDP

            Egypt’s food industries contribute 24.5% of GDP

            Profits at top Saudi banks jump 17.6% in Q1

            Profits at top Saudi banks jump 17.6% in Q1

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            New study reveals that UAE is most competitive economy in the Arab world

            New study reveals that UAE is most competitive economy in the Arab world

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman Construction Equipment Industry to 2028

            Oman Construction Equipment Industry to 2028

            $36mln contract for construction of Duqm fisheries complex

            $36mln contract for construction of Duqm fisheries complex

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            Madayn working on major Oman industrial city projects

            Madayn working on major Oman industrial city projects

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Iraq set to award new Faw Port deals

            Iraq set to award new Faw Port deals

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              Suez Canal expects US$3.5 billion in revenues in H1

              Suez Canal expects US$3.5 billion in revenues in H1

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Investments in renewables in Egypt reach LE6 bn: Official

              Investments in renewables in Egypt reach LE6 bn: Official

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              JGC lands $3.7bn Iraq refinery upgradation project deal

              JGC lands $3.7bn Iraq refinery upgradation project deal

              Trending Tags

              • Hospitality

                Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

                Qatar’s hospitality sector peaks despite turbulent 2020

                Qatar’s hospitality sector peaks despite turbulent 2020

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Staycations to stimulate Qatar’s hospitality sector

                Staycations to stimulate Qatar’s hospitality sector

              • IFP Events
                • Event News
                • Upcoming Events
              • العربية
              No Result
              View All Result
              IFP Info - News
              No Result
              View All Result

              Resilience, reform, confidence: the rise of a recovering Italy

              The Banker

              February 10, 2016
              in Economy
              0
              0
              SHARES
              19
              VIEWS
              Share on FacebookShare on Twitter

              Italy has weathered a severe economic storm over the past few years but, with the help of foreign investment, the country is now on track to regain its strength and competitiveness, writes Fabio Gallia, CEO of Cassa Depositi e Prestiti.

              If I were asked to describe what has happened in Italy since 2008 – during seven years of deep economic and financial crisis – I would not just make reference to the dramatic – a 10% drop in the country's gross domestic product (GDP) – but I would go deeper. I would make reference to other significant data points.

              The number of new cars sold receded to levels last seen in the 1970s, and cement production decreased to levels reminiscent of the 1960s. Since the beginning of the crisis in 2008, some 800,000 jobs have been lost in the real estate sector. This is another way of looking at the past few years, and I believe it adds a stronger, bitter flavour, and helps others to understand how severe the crisis was in my country.

              Moving forward to the present situation, I would prefer to use keywords to describe what Italy is doing now and how it is recovering. The three words I would use are resilience, reforms and confidence.

              Resilience: a united front 
              Historically, the Italian economy has shown strong resilience. In the aftermath of the crisis, the 'export-led' growth model, which characterised the Italian economy in the entire post-World War II period, is still in place. Italian exports amount to about €400bn and are growing at an annual rate of 4.4%. The country's industrial base is strong, and it reacted positively to the adverse economic conditions and now continues to compete in the international markets. (Italian industry has the second largest market share in the euro area after Germany, while its overall export market share ranks third after Germany and France).

              Households in Italy remain financially solid and hold low levels of debt, especially when compared to other European countries. The net wealth of Italian households is close to €9000bn, while their indebtedness is equal to about 80% of disposable income. The strong role played by families, through intergenerational support, allowed the country to withstand the crisis and resultant high levels of youth unemployment in a cohesive way.

              The country has the highest number of Unesco heritage sites in the world, which makes it a key player in global tourism. In 2014, it ranked fifth in the world in terms of tourist numbers, with 48 million visitors, and sixth in terms of tourist expenditure.

              Reforms: a work in progress
              The Italian government is committed to an ambitious reform agenda, of which 70% is already said to have been implemented. The structural reforms, both complete and under way, involve the labour market, institutional and political framework, tax system, banking sector, judicial system, spending review process and a large privatisation programme of state-owned enterprises, among others.

              The reforms are going in the right direction, and I am sure that once all in place, they will raise the efficiency of our economy greatly. Recent reforms to the pension system improved sustainability, by increasing the retirement age and reducing the gap between contributions and retirement income.

              Thanks to the strong fiscal consolidation policies introduced by the government, and the willingness of the Italian population to make sacrifices, public finances are now under control, and the tensions we saw in the sovereign debt market at the end of 2011 are fortunately only memories of the past.

              Even though the public debt-to-GDP ratio reached 133% in 2015, it is expected to decrease by 2016, thanks to the government budget deficit standing at less than 3% and a large primary surplus. This general improvement in public finance neutralised the fiscal stance, stimulating internal demand (i.e. private consumption and gross fixed investment) over the course of 2015.
               
              Italy is not performing well in global competitiveness rankings, but I am confident that in a few years this set of reforms will ignite a structural improvement.

              Confidence: growing steadily
              Following three consecutive years of recession, Italy's economy is finally recovering. The real GDP growth rate is expected to be positive, if still weak, in 2015 (0.8%) with further growth predicted in 2016 (1.3%). In a boost to its ongoing recovery, Italy's growth forecasts have been constantly revised upward by the International Monetary Fund over the past 12 months, contrary to what is happening in other European countries.

              At the end of 2014, Italian business, household and market confidence indicators reached the highest level in four years, showing that this renewed confidence is one of the main sources of the recovery. As a result, during the first 10 months of 2015, the number of new cars sold increased by 15%, while in September, the real estate production index grew by 0.4% year on year, the first sign of growth in four-and-a-half years.

              Of course, there are also positive external factors that should be mentioned – the low price of oil, the weaker euro/dollar exchange rate and the very low long-term interest rates resulting from the European Central Bank’s quantitative easing programme – although some downside risks have been born out of the new wave of geopolitical tensions resulting from the recent terrorist attacks in Paris.

              Foreign investors have perceived the positive signs of change, and are now willing to invest in Italy again. In 2014, investments by sovereign wealth funds in Italy amounted to $2.2bn, up by 50% compared with the previous year.
              At the end of October 2015, the yield on the Italian BOTs (six-month government bonds) went into negative territory for the first time, confirming this positive perception of the Italian economy. Improved confidence in the country is also shown by the growing appetite for sovereign bonds issued by the Italian government: between March and July, net purchases by foreign investors amounted to €21bn.

              CDP's role
              Since 1850, Cassa Depositi e Prestiti (CDP), which is majority owned by the Italian Ministry of Economy and Finance, has played a key role in supporting the Italian economy, and it will continue to stimulate the economic growth of the country in the coming years. CDP is now launching a five-year business plan, with a 2020 end-date, in order to meet the changing and challenging needs of the Italian economy in the post-crisis landscape, aimed at sustaining the ongoing economic recovery with more effective financing tools, both from the debt and equity side.

              As a long-term investor, CDP will be able to finance strategic projects, which have a higher impact on productivity in the Italian economy. Characterised by what it calls 'patient capital', CDP’s business model is less influenced by short-term strategies.
               
              CDP will also try to address potential market failures, targeting positive economic and social returns, during a period during when public intervention is limited by severe constraints. In doing this, CDP will act as a catalyst for private resources and co-operate with the banking system, in the same way as other national promotional banks in Europe do, such as KfW in Germany, CDC in France, and ICO in Spain. It is the main Italian player in the Juncker Plan [the European Commission's Investment Plan for Europe].

              It will invest in equity to increase the size of Italian firms, and support better governance and management, favouring stock exchange listings. Some estimates show that if Italy had 1000 listed companies, instead of the 350-odd companies currently listed, GDP could increase by up to 1.5%. CDP will invest in what I believe are the priority growth drivers for the domestic economy: internationalisation and exports; supporting enterprises, innovation and start-ups; public sector efficiency and infrastructure; real estate and social housing; and tourism. All this, with special attention paid to energy saving and environmental sustainability. Because of all the issues mentioned above, Italy, having lagged behind, is now finding a new equilibrium.

              In many areas important changes have already occurred and Italy is on the right track to becoming even more competitive.
              Fabio Gallia is CEO of Cassa Depositi e Prestiti.
              The Banker
              10 February

              Previous Post

              Saudi power projects need $133 billion investment over 10 years

              Next Post

              Innovation Alliance: Five Italian Trade Fairs for Food Industry packaging and machinery to converge to one big event

              Next Post

              Eiffel Elevators expands factory in Lebanon

              News Letter

              Subscribe to our mailing list to receive daily updates direct to your inbox!

              *we hate spam as much as you do

              Filter By Country

              IFP Info – News

              The latest Middle East Business News & Events brought to you on a daily basis from multiple credible news portals around the world

              Follow Us

              Categories

              • Agrofood
              • Business & Economy
              • Construction
              • Covid-19 Updates
              • Energy
              • Event News
              • Hospitality
              • Interviews

              Countries

              • Bahrain
              • Egypt
              • Iran
              • Iraq
              • Jordan
              • Kingdom of Saudi Arabia
              • Kuwait
              • Lebanon
              • Oman
              • Other Africa
              • Other GCC
              • Other Middle East
              • Qatar
              • Syria
              • United Arab Emirates
              • Worldwide

              Newsletter

              Subscribe to our mailing list to receive daily updates direct to your inbox!

              *we hate spam as much as you do

              • About
              • Advertise
              • Privacy & Policy
              • Contact

              © 2023 IFP Group - All Rights Reserved / www.ifpexpo.com

              No Result
              View All Result
              • Agrofood
              • Business & Economy
              • Construction
              • Energy
              • Hospitality
              • IFP Events
                • Event News
                • Upcoming Events
              • العربية

              © 2023 IFP Group - All Rights Reserved / www.ifpexpo.com