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Pandemic and crisis could set Italy's technological development back for 20 years ago

Mon May 04, 2020
watermark Economic news

Ernesto Ferlenghi, president of Confindustria Russia (Association of Italian Industrialists in Russia), said that the crisis caused by the Covid-19 pandemic could set Italy's technological development back for 20 years ago. The politician noted that more than 90% of Italian companies are small and medium-sized businesses. And today they have massive losses and suffer from falling demand. Rising unemployment exacerbates the situation in the country.

At the same time, Italy has a very high level of public debt, which will reach 155% of the country's GDP in 2020. Thus, Italy will soon have no money left to invest in the country's technological development.

Experts predict that Italy's GDP will fall by 8% this year. The fall in demand will continue in 2021. Domestic and foreign investment may be reduced by 12%, and exports – by 14.4%.

Ferlenghi also said that in order to revive the Italian economy, serious support measures are needed, including from other EU countries. In particular, 600-700 billion euros are needed only for business restoration.

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