Bank of Italy confirms the recovery. Housing prices, stops the decline – Il Sole 24 Ore

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This article was published on 6 November 2015 at 15:12.
The last change is the November 6, 2015 at 16:10.

While the international situation is becoming more uncertain, in Italy the economic recovery reduces the risk financial instability. Remain favorable indicators of sustainability of public finances while for families, the increase in disposable income and low interest rates strengthened financial condition. Concerned about the low inflation. Are the key points of the report drafted by Via Nazionale on the situation of the financial markets.

We emphasize global risks
The slowdown in China and other emerging economies has an impact on the global growth outlook. According to economists of Via Nazionale can ensue tensions in financial markets, commodities and exchange rates. In the euro area “it has eased the uncertainty arising from the situation in Greece.” Overall the report said “the recovery in economic activity and the extraordinary measures of monetary policy combine to limit the risks.” In the background the ghost of inflation that “however, remains particularly low, and it is more difficult the reabsorption of public and private debts.”

Italy sees calmer
In Italy the strengthening of the economy reduces the risks to financial stability. In terms of credit “are gradually improving conditions for supply of bank loans, which should return to growth in 2016. Credit to the private sector in relation to GDP is well below the average long-term. Remain favorable overall indicators of sustainability of public finances, “explains the report.

You stop the decline in house prices
Although the stock of unsold homes “is still high, the conditions of the real estate sector are gradually consolidating.” The document highlights that “stopped the decline in property prices and leading indicators foreshadow continued improvement in the coming months.”

decreased risks for families
Financial best for families. “The increase in disposable income and low interest rates strengthen the financial condition, already solid, families” explain the economists of the Bank of Italy. “It boils down – in fact – the vulnerability of even the most vulnerable and the debt remains low, despite a strong recovery in real estate loans.”

Fewer companies vulnerable
The improvement in the financial condition of the company is also extending
to the most fragile, slightly growing profit margins. In a macroeconomic scenario of recovery in line with our most recent projections, the share of firms financially vulnerable will decline significantly in 2016. Risks may result from unfavorable macroeconomic conditions or a sudden rise in rates interest. In short, 2015 will be ‘a turning point for Italian companies: two out of three count close financial statements with a profit. A record for the last ten years. A recent survey conducted by the Institute own “indicates that two thirds of the companies, the share more ‘high for about ten years, expect to close the balance of 2015 with a profit. The majority of respondents – said the report – also foreshadows increased investment and improved conditions of access to credit in the coming months. ”

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