Business
Italy: Berlusconi says worst of recession 'over', praises banks
Rome, 29 October (AKI) - Italian prime minister Silvio Berlusconi said on Thursday that the worst of the financial crisis has ended and the Italian economy is growing again. Berlusconi made the remarks after Italy's Institute for Studies and Economic Analyses said earlier in the week that Italian business confidence rose in October to the highest level in more than a year.
In addition, Italy's central bank said in its latest bulletin that the country's gross domestic product would grow by 0.6 percent in 2010 after shrinking 4.7 percent this year.
"The worst of the financial crisis seems to be behind us and it appears that slowly, recovery has begun," said the premier in a letter sent to the president of the Association of Italian Foundations and Savings Banks (ACRI) Giuseppe Guzzetti to mark 85th World Savings Day.
The premier also praised Italy's banks for their resilience and "behaviour".
"The government appreciates the behaviour of the Italian banking system which fared better during the crisis than other countries," he said.
Industrial production also surged in August due to growing exports and government incentives which boosted demand and helped sales recover. In February, the Italian government introduced incentives for people trading in the most polluting cars and buying 'eco-friendly' cars.
However, the governor of Italy's Central Bank, Mario Draghi disagreed with Berlusconi's upbeat assessment of Italy's econmic prospects.
"The free-fall of our economy which took place between the end of 2008 and the beginning of 2009 has stopped. However, we are less sure about a recovery that will last or that doesn't depend solely on the government's economic policies," said Draghi in a World Savings Day speech.
In addition, Draghi said that 650,000 jobs had been lost in Italy between September 2008 and September 2009 and that more could go during the rest of this year.
In addition, Italy's central bank said in its latest bulletin that the country's gross domestic product would grow by 0.6 percent in 2010 after shrinking 4.7 percent this year.
"The worst of the financial crisis seems to be behind us and it appears that slowly, recovery has begun," said the premier in a letter sent to the president of the Association of Italian Foundations and Savings Banks (ACRI) Giuseppe Guzzetti to mark 85th World Savings Day.
The premier also praised Italy's banks for their resilience and "behaviour".
"The government appreciates the behaviour of the Italian banking system which fared better during the crisis than other countries," he said.
Industrial production also surged in August due to growing exports and government incentives which boosted demand and helped sales recover. In February, the Italian government introduced incentives for people trading in the most polluting cars and buying 'eco-friendly' cars.
However, the governor of Italy's Central Bank, Mario Draghi disagreed with Berlusconi's upbeat assessment of Italy's econmic prospects.
"The free-fall of our economy which took place between the end of 2008 and the beginning of 2009 has stopped. However, we are less sure about a recovery that will last or that doesn't depend solely on the government's economic policies," said Draghi in a World Savings Day speech.
In addition, Draghi said that 650,000 jobs had been lost in Italy between September 2008 and September 2009 and that more could go during the rest of this year.
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