It’s time to check on the current economic situation and the job scene in Italy and the forecasts experts have for the rest of 2021 and beyond. Get the info right to decide whether to work overseas in Italy.
Italy was the first country in Europe to have been hit by the COVID-19. IMF’s estimate says that in 2020 Italy suffered a loss in GDP of 10.5%. The real output reduced by 18% in the first half of 2020. Even the resurgence of construction and industrial production in Italy wasn’t able to cover the losses other sectors suffered.
A rebound in GDP of 5.2% is expected in 2021. It’s expected that the country is expected to have further growth in GDP of 2.6% in 2022. In January 2021, IMF revised Italy’s GDP growth expectations to 3%. In 2021 and 3.6% the following year.
Even though Italy’s primary budget is positive in structure, the cost of interest on the government’s debt has put the economy under pressure. This is particularly true as the government budget is structurally in deficit. This situation has been worsened by the COVID-19 crisis which reduced income from direct and indirect taxes.
The budget deficit in 2020 was 3.8% of GDP. In 2021, the deficit could come down to 3.4% with a rebound in economic activity. In 2020, the debt-to-GDP touched 161.8%. Come 2022, this level is expected to gradually decrease to 156.6%.
The unemployment rate rose to 11% in 2020 from 9.9% in 2019. This is despite the extended coverage for wage supplementation schemes. In 2021 the unemployment rate is expected to increase to 11.8%. The job losses will then be concentrated among workers in the service sector.
The agricultural sector in Italy employs 4% of the country’s workforce. The sector represents 1.9% of the country’s GDP.
Italy’s industrial sector employs 26% of the active population and accounts for 21.4% of GDP.
Italy’s service sector employs 71% of the country’s workforce. It constitutes 66.3% of the country’s GDP.
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