Italy's Economic Woes in the Wake of COVID-19: A Stark Contrast with Spain

Italy's economy, hindered by structural weaknesses, is struggling post-COVID-19, with GDP stagnation, declining business confidence, and insufficient investment. Contrast with Spain's robust growth highlights reliance on tourism and effective modernization. Italian economists advocate for prioritizing education investment to spark growth.

Italy's economic recovery from the COVID-19 pandemic has faltered, revealing underlying structural vulnerabilities that jeopardize the euro zone's third largest economy. With GDP stagnating in the third quarter, national statistics bureau ISTAT predicts a mere 0.5% growth for 2024, contradicting the government's 1% target.

Business confidence in Italy is at its lowest since 2021, and a long-standing manufacturing crisis is worsening. Despite receiving substantial EU recovery funds, Italy's sluggish growth contrasts sharply with Spain, which is expanding at a much faster pace thanks to effective policy strategies in migration and infrastructure.

Experts suggest Italy's growth issues stem from inadequate investment in education and public services, bureaucratic inefficiencies, and an uncompetitive manufacturing sector. Leading Italian economists recommend prioritizing investment in education to revitalize the economy and avoid further financial instability.

(With inputs from agencies.)