Italy’s economy and related exchange trade fund have remained rather stagnate and slow to recover. The country has seen a growing trend of a lower savings, but a good indication of the recovery is in the slowly rising European economic sentiment.
The European Commission concluded that the economic sentiment indicator (ESI) for the 16-country eurozone area rose to 95.7 from 94.1 in December, as stated in the The New York Times. France, Italy and Germany are inching closer to the historical average of 100. The data shows that the recovery is continuing and deflation may no longer be an issue, with consumers spending more. However, high unemployment still remains an issue.
Ettore Gotti Tedeschi, head of the Vatican bank, says Italy’s savings rate, or what Tedeschi refers to as the “oil” of the country’s economy, has sharply declined, according to The Straits Times. Tedeschi stated that “fifteen years ago savings (including real estate) totaled three times the public debt in Italy. Now it is only double.”
Silvio Berlusconi may not be Italy’s most morally virtuous Prime Minister, but he is the best Italy has, considering the previous center-left candidates who have been accused of fraud, embezzlement or sexual deviancy, according to The Economist. Additionally, Berlusconi is benefiting from a disparate and disunited opposition and a wave of sympathy for recently being accosted by a mentally disturbed person.
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- iShares MSCI Italy Index (NYSEArca: EWI)
Max Chen contributed to this article.