24/6/2011 00:00:00
The Study Centre of Confindustria revises downward the estimate for 2011 growth to 0.9% (from 1.1% reported in December) and declares that without structural reforms, the GDP in 2012 will experience a further braking, reaching +0.6% compared to the standard estimate of 1.1%. So, besides the maneuver which is now evaluated in a total of 39 billion Euro, an intervention would be needed for a further 1% of GDP, which represents a 18 billion Euro crackdown. In terms of work units (AWU) the absorption of labor units in the same period fell by 1.1 million units. And the labor market prospects are not good because in 2012, the ULC will return to rise (+0.6% this year and +1.2% next year). The Confindustria report also contains an estimate of the higher costs for households and businesses resulting from higher oil prices and rising interest rates: on average each family will spend 681 euro more for energy and the families who have adjustable-rate mortgages will pay 2.2 billion more in higher charges payable.
