THE delays on the PNRR and the continuation of theinflation are the two main threats to the country’s economic prospects.Italy. This is highlighted by the latest from the «Observatory on the attractiveness of Italy to foreign investors» (Spring Report 2024) created by Censis for Aibe (Italian Association of Foreign Banks).
The main risks of Italy
In particular, among events hey phenomena which could mainly influence the economic and financial situation of Italy during 2024the opinions collected at the Aibe panel converge above all on two factors: the continuation of theinflation (57.9%) ei delays in the implementation of the Pnrr (56.1%). The constant increase in prices could in fact erode the purchasing power of families, limiting spending and slowing down the country’s economic activity. At the same time, delays in the Pnrr and expected reforms could compromise Italy’s investments and competitiveness in the long term, slowing down the economic recovery.
Secondary economic threats
Not unimportant threats for the Beautiful country they are also the prices of raw materials and energystill high, indicated by 40.4%, but also the entry into recession in Germany, indicated by 36.8%, considering the effects that will be produced on Italian companies linked to German industry. The return of the Stability and Growth Pact and the deflationary risk to contain the deficit and public debt (33.3%).
The international risk situation
Broadening our gaze to global picturethere are two key factors that could significantly influence the dynamics of the international community: the possible Trump’s re-election to the American presidential elections (for 61.4%) and the possible victory on the pitch of Russia towards Ukraine (52.6%). On the EU, considering the level of uncertainty on the European continent and in the surrounding regions created in the last two years, 43.9% of the panel underlines the priority need, in the next legislative mandate, for a strengthening of the attention of the European institutions towards the completion of European common defense policy.
In short, the economic future of Italy and Europe it will be decreed by the outcome of important challenges such as the management of the inflationary pressure, investments and public reforms linked to the PNRR and international tensions on the geopolitical front.
