Italy’s regional divide: A tale of two economies

Posted: May 15, 2015 in economy
Tags: , ,

UK Only Article: 
standard article

Issue: 

The great distortion

Fly Title: 

Italy’s regional divide

Rubric: 

As the north limps ahead, the south swoons

Location: 

CATANIA

AFTER three years of recession, Italy’s economy actually grew in the first three months of the year, by 0.3% compared with the previous quarter. It is forecast to grow by 0.7% over the year as a whole, boosted by a weak euro, cheap oil, the European Central Bank’s bond-buying programme and a reform-minded government. That looks good compared with the country’s grim recent record: between 2001 and 2013 GDP shrank by 0.2%.
National economic data always mask regional differences. In Italy, however, they disguise a divide that is deeper than normal (see charts). The country is, in effect, made up of two economies. Take that 2001-13 stagnation. In that period northern and central Italy grew by a slightly less miserable 2%. The economy of the south, meanwhile, atrophied by 7%.

This is partly because the south grew more slowly than the …<div class="og_rss_groups"></div>

via Economic Crisis http://ift.tt/1PlJGWu

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