A recent survey conducted by PXR Italy showed that 7 out of 10 Italians are afraid of the probable post-Coronavirus economic crisis. A question arises spontaneously: is a new economic crisis really coming? Let's understand it together.
What is the economic crisis and why are we afraid of it?
An economic crisis is the transition from a state of prosperity to depression in economic life and the continuation of a situation of stagnant business, unemployment and low prices, wages, profits and interest. The crisis turns out to be the direct consequence of a phenomenon called economic recession; the latter is a condition characterised by lower levels of productivity than would be achieved by making full and efficient use of all available productive factors. This level of productivity of a country corresponds to the GDP, i.e. the aggregate value of all goods and services for consumption produced in the territory of a country in a given period of time. Italy is familiar with the meaning of these three words: crisis, GDP, recession. Because it knows their effects and practical consequences.
At the moment, the concern about a probable new recession is due to the freezing of production activities following the government's Coronavirus decrees; retail trade, catering and other personal service activities were suspended on 11 March, and all activities not considered essential on the following days.
If we put the pieces of the puzzle together, the picture that emerges is clear: the country produces less than it could produce (GDP falls) and the demand for goods and services falls in turn; investment and relations with foreign investors tighten, bringing less wealth into the pockets of the state. But the most immediate and devastating effect will be on the personal and family level. The impact on millions of precarious or undeclared workers will be enormous and it is estimated that unemployment will once again exceed 10% (data from the Confindustria Research Centre).
At the moment it is difficult to understand how the world population (and Italy in particular) will behave in relation to certain markets. Everything related to travel, hygiene and social contact will be put to the test. And therefore the sectors of tourism, wellness, commerce and retail, but also the same health and personal care services. In this regard, PXR Italy proposes to carry out market research; to understand the sentiment of the population, predict market trends and enable companies to move accordingly.
So it would seem that the fear of 26 million Italians (out of a total of 36 million taken into consideration in the PXR Italy study) regarding the probable economic crisis is justified; but beyond the alarming numbers, we would like to conclude with a phrase from the famous writer Mark Twain: "Courage is resistance to fear and domination of fear, not absence of fear".
Could this be an opportunity to show the world the value of Italy?
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