Economic
experts suggest that there are two ways to beat the economic crisis: close up
shop or invest more into the business. Although going deeper into debt to
invest more in such a tough economic climate can be perilous, recent statistics
reveal that Italian businesses are willing to take that risk.
According
to data from Artigiancassa, Italian artisans and craftsmen have been the most
willing to re-invest, relying on credit from smaller, local banking
institutions, which are more willing to grant credit than larger ones.
Many
artisans in central Italy have even doubled their investments. For example, in
January and February, artisan footwear firms in the Marche region increased
investments by some 30 percent, compared to the same period in 2008.
This
is supported by the fact that business confidence is improving, albeit
slightly. According to a poll conducted by Banca d’Italia and newspaper Il
Sole 24 Ore in March, business leaders are becoming slightly more
optimistic about the severity and duration of the economic crisis. The poll of
440 small and medium-sized businesses throughout Italy showed that some 63
percent of entrepreneurs believe that the economy will remain stagnant or
worsen over the next three months, while some 58 percent believe that the
economy would be considerably better in three years time.
Unfortunately the
Italian consumer is not as optimistic. Data released by the Confcommercio
reveals that consumer spending dropped further, by about 4 percent, in March
2009. This data is compared to a slight increase in spending by Italian
businesses in the same period, says president of Federchimica, Giorgio Squinzi.
The
Italian government is also trying to boost consumer spending. The Senate
recently approved a series of anti-crisis measures, including incentives of up
to 3,500 euro for consumers who purchase eco-friendly cars. The incentive,
which is part of the government’s push to replace old cars with cleaner,
fuel-efficient models, helped increase sales slightly in March after months of
falling volumes.
