Italy’s second recession in two years is largely due to the loss of competitiveness in manufacturing, reflecting low productivity growth rather than rapid growth in wage costs. This has been compounded by Italy’s specialisation in areas of production which are increasingly exposed to international competition. The fact that the poor performance of the external sector is largely responsible for Italy’s problems goes a long way towards explaining national concerns about the euro.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services