Press Review #SoseXpress 17/23 April 2021

The Recovery Plan is a challenge for Italy that must combine imagination and creativity, planning skills, and concreteness (...) to deliver a more modern country within a stronger and fairer Europe to the younger generations. 

Mario Draghi, Prime Minister, set the fundamental goals of the Recovery Plan. 

The debate of ideas 

 

Next Generation EU, how to evaluate the effectiveness of cohesion policies

The Multiannual Financial Framework 2021-2027 and the Next Generation EU include over € 300 billion of European funds for Italy. The NRRP represents a unique opportunity to reduce the North-South gap. It is necessary to improve the quality of institutions in the southern regions to ensure that these resources produce effective investment and homogeneous development. Here to learn more. 

 

Studies, research and numbers 

 

Censis, the agro-industry looks to the post-Covid recovery

The "Made in Italy" agro-industrial sector continues to be the flagship of our exports to global markets. After the growth of 4% in 2019 and the slowdown during the pandemic with a decrease of 1.8%, exports touched 40 billion (+ 1.9% in 2020). In the period 2021-2022, the demand in the food sector is expected to grow globally. This emerges from a study by Censis. Here to learn more.

 

Eurostat, in Italy 40 billion wages were lost in 2020 

Italy lost over 39.2 billion in wages and salaries in 2020, with a decrease of 7.47% in 2019. Eurostat revealed these data in the update of the tables on the main components of GDP. According to Eurostat, wages and salaries went from 525.732 billion in 2019 to 486.459 billion in 2020. Within the 27 European Member Countries, the decline in the total wages was 1.92%. Here to learn more. 

 

Eurostat, the decline of production in the construction sector

In February 2021, compared to January 2021, seasonally adjusted production in the construction sector decreased by 2.1% in the euro area and by 1.6% in the EU, according to first estimates by Eurostat, the statistical office of the European Union. Compared to last year, production fell by 5.8% in the Eurozone and 5.4% in the EU. Here to learn more. 

 

Eurostat released the April edition of the European Statistical Recovery Dashboard

Eurostat published the April edition of the interactive European statistical recovery dashboard. The dashboard contains monthly and quarterly indicators from several statistical areas relevant for tracking the economic and social recovery from the COVID-19 pandemic across countries and time. The dashboard is updated each month with the latest data available for each indicator. Here and here to learn more. 

 

Istat, Italian companies' territorial reports 

Istat provided the first results of the permanent censuses, releasing 21 territorial reports concerning enterprises' structure and competitiveness at the regional and provincial levels. The reports analyse the changes in the production system and the most relevant phenomena for the economic growth of the territories. The report involved a sample of about 280,000 companies with three or more employees who produce 84.4% of the national value-added. For each economic activity, the results are detailed by class of workers, by territory, up to the province, and based on different combinations of the three components (sector-company size-territory). Here and here the Notes by Istat. 

 

Istat, the update of territorial indicators for development policies is online 

The update of the new ISTAT database of Territorial Indicators for Development Policies was published within the project "Territorial and sectoral statistical information for cohesion policies 2014-2020". The database contains 327 indicators (258 + 56 gender indicators) available at a regional level, for macro-area and for the target areas of the different cycles of development policies issued within the Sistan network. These indicators, updated monthly, are a very useful tool to get a quantitative idea of territories in relation to the different areas of intervention. Here the Note by Istat. 

 

ECB-Bankitalia, the decreasing surplus of current accounts in the Euro Zone and Italy 

In February, the current account balance of the Euro Area closed with a surplus of € 25.9bn, down compared to € 35bn in January. The ECB revealed these data, specifying that the current account recorded a surplus of € 259bn (2.3% of GDP) in the same month, compared to 263bn (2.2% of GDP) reported in the same period of 2020. At the same time, the Bank of Italy revealed officially that in February 2021, the current account surplus for Italy amounted to € 59.2bn (3.6% of GDP), from 59.4bn in the corresponding period of 2020. At the end of 2020, Italy's s net international investment position was positive by 30.4 billion (1.8% of GDP), up from the 15.2 billion recorded at the end of September. The increase is entirely due to the current account surplus. Here and here to learn more. 

 

Istat, production in construction on the rise in February 

Istat revealed that in February 2021, the seasonally adjusted index of construction production increased by 1.4% compared to January, bringing the average for the quarter December 2020 - February 2021 to + 0.6% compared to the previous quarter. The unadjusted index for construction output grew by 2.4%, while the calendar-adjusted index rose by 3.5%. Here the Note by Istat. 

 

Infocamere, youth entrepreneurship in decline 

Almost one out of four "young" companies is missing compared to ten years ago. 697 thousand enterprises run by young people under 35 - or with a prevalence of young people under 35 in the governance - were registered in the Business Register in 2011 and 541 thousand at the end of 2020, 156 thousand less than ten years ago. This snapshot emerges from the analysis by Unioncamere-Infocamere for Il Sole 24 Ore. Here to learn more. 

 

Istat, in February industrial turnover up by 0.2%, by 0.9% on an annual basis. 

Istat revealed that in February, the seasonally adjusted turnover index increased by 0.2%, following the growth in the domestic market (+ 0.9%) and a decline in the non-domestic market ( -1.3%). The average of the last three months increased by 2.4% compared to the previous three months. The calendar-adjusted industrial turnover index increased by 0.9%. Here the Note by Istat. 

 

Eurostat, Euro area government deficit at 7.2% and EU at 6.9% of GDP  

In 2020, the euro area and EU government deficits increased significantly compared to 2019, as did the government debt, in the context of the measures undertaken in response to the pandemic. In the euro area, the government deficit-to-GDP ratio increased from 0.6% in 2019 to 7.2% in 2020. The total government debt of the euro area countries increased to 11,107 billion euros, 90.7% of GDP. Eurostat reveals these data in a first report on the effects of the pandemic crisis and the lockdown. Here the Eurostat press releases section. 

 

Intesa Sanpaolo, Annual Report on industrial districts 2020 

After an estimated decline in turnover of 12.2% in 2020, a rebound in production is expected for 2021, with an increase of 11.8%. The recovery will be partial and will leave the district aggregate turnover approximately 3% below the 2019 level. The close proximity of supply chains is a competitive advantage for the districts. The impact of ICT and R&D on the total purchases of goods and services increased thanks to the driving force of mechanics engineering. This framework emerges from the 13th Report on industrial districts 2020 by the Intesa Sanpaolo Research Department. According to the study, the difficulties of the fashion system weigh on the context that in the first part of the year is still penalized by the pandemic. Here to learn more.

 

Moody's, from the lockdown to the shopping boom. Positive post-pandemic signs 

According to Moody's, consumers worldwide have accumulated savings for $ 5.4 trillion since the outbreak of the coronavirus pandemic thanks to confinement measures and mortgage moratoriums. And now, with the recovery of normality and confidence, a strong rebound in spending is expected, as consumers are ready to spend 6% of global GDP on goods and services. Here to learn more. 

 

Eurostat, the labour market in 2020 

In 2020, the EU labour market was heavily affected by the pandemic. The employment rate for people aged 20-64 dropped to 72.4%, down 0.7% compared to 2019. The employment rate for men stood at 78.1%, compared to 79.0% in 2019. The employment rate for women was 66.8%, down from 67.3%. This development has further reduced the gender employment gap, to 11.3%, compared to 11.7% in 2019. This information comes from the data published by Eurostat on the labour market in 2020. Here to read more. 

 

Cerved, Sustainable Italy Report 2021 

There is a large gap between North and South in terms of sustainability in Italy, aggravated by the pandemic wave. This emerges in the Sustainable Italy Report 2021 by Cerved, which draws a map of the country's strengths and weaknesses to contribute to relaunch and sustainable development. The study analyses all the Italian provinces based on 280 economic, social and environmental sustainability indicators, aggregated into 20 criteria. Here to learn more. 

 

Unioncamere, 39% of companies hire workers with green skills

In 2020, over 558 thousand industrial and service companies invested in green skills. 39% of companies requested an aptitude for energy saving and environmental sustainability in at least half of the profiles sought. The companies investing in green skills continued to activate over 70% of the total contracts even during the health and economic crisis. Unioncamere and Anpal reveal these data on the World Earth Day. Here for more information. 

 

Inps, 442 thousand new jobs in January 2021 

The INPS Precarious Work Observatory revealed that the recruitments activated by private employers in January 2021 amounted to 442,000, with a reduction of 30% compared to the same period of 2020 (650 thousand), a slightly better result than December 2020 (-40% compared to December 2019). The contraction reflects the worsening of the Covid-19 pandemic in the autumn and winter months. Here to learn more. 

 

IHS Markit, manufacturing boom accelerates the expansion of the eurozone

In April, eurozone economic activity recorded the fastest growth rate since last July thanks to the record expansion of manufacturing production accompanied by the growth of the tertiary sector since last August. The Eurozone IHS Markit PMI Composite Index rose in April to 53.7 from 53.2 in March. The manufacturing PMI index rose to 63.3 points from the previous 62.5, higher than the expected 62 points. The PMI for services also increased, reaching 50.3 points from 49.6 in the previous survey. Here to learn more. 

 

The voice of Stakeholders 

 

Confesercenti, 70 thousand enterprises at risk 

Covid restrictions boost online sales and sink those of shops and supermarkets. This trend, together with the consumer crisis triggered by the pandemic, is putting the entire retail sector in serious difficulty. Confesercenti pointed out that, without a decisive turnaround, approximately 70,000 commercial activities could permanently cease in 2021. 35,000 activities in shopping centres and galleries are at risk above. Here to learn more. 

 

Confartigianato, the crisis of the Italian fashion industry weighs 3.6 times more than of European football crisis

Fashion is the manufacturing sector that has suffered most from the effects of the recession. The fall in revenues in the Textile-Clothing-Footwear industry is 22% higher than the average of companies, with a reduction in sales of € 17.9 billion: The Italian fashion industry recorded a loss of 3.6 times higher than the loss recorded by the football teams of the leading European leagues in the 2019/20 and 2020/21 seasons. Confartigianato highlighted these data during the last hearing on the Economic and Financial Document 2021 (Italian acronym DEF). Here to learn more. 

 

Innovation 

 

Smart home up by 24% in Europe 

The Covid-19 pandemic has led to an acceleration of digitalization by Italian consumers. A report by GfK recorded in 2020 a positive trend for consumer technology. In particular, the segment of smart home devices grew by 24% for a value of 28 billion dollar in the 7 main European markets. Within this segment, sales of Smart Entertainment & Office products grew by + 19%. Here to learn more. 

 

Italian companies' revenues increased by 600bn thanks to cloud technology. And the PA saves 1 bn a year

Full adoption of cloud computing solutions by Italian companies could increase turnover by € 600 billion, of which more than half in small and medium-sized enterprises. This emerges from the report "Una strategia cloud per un'Italia più competitiva e sicura (A cloud strategy for a more competitive and secure Italy)" by the I-Com Institute. Currently, only 30% of the analysed sample adopt cloud technologies, particularly the public cloud. In the PA, the adoption of the cloud technology could generate over 1 billion savings per year, thanks to lower energy costs and greater staff productivity. Here to learn more. 

 

Public cloud investments up by 23% in 2021 

In 2021 end-user spending on public cloud services will grow by 23.1% worldwide reaching $ 332.3 billion from 270 billion in 2020. Gartner forecasts emerging technologies such as containerization, virtualization, and edge computing to enter the mainstream and increase cloud spending. Here to learn more. 

 

 Local Authorities 

 

Intesa San Paolo, local governments' debt down by 84.2 billion

Intesa Sanpaolo Research Department analysed the performance of local finance in 2020, highlighting that the marked increase in public debt did not affect local governments' financial statements, which showed a consolidated debt of € 84, 2 billion, a reduction compared to 2019. However, the Regions' debt is growing, returning to the mid-decade levels, while the Municipalities' debt symmetrically decreased. Here to learn more. 

 

PA, simplification, digitization, and new skills for the relaunch 

Administrative simplification and de-bureaucratization of processes and procedures in the relations between PA and businesses are the ingredients for the relaunch according to the study conducted by Deloitte Consulting "La semplificazione amministrativa – Come migliorare il rapporto tra PA e Imprese (Administrative simplification - How to improve the relationship between PA and companies)". The study analyses the administrative complexity, highlights its causes and effects, and identifies strategies to simplify and streamline bureaucracy. Here for more information. 

 

Istat published the final balance sheets of Municipalities 

Istat published the result of the analyses on the data reported in the 2019 certified financial statements (so-called "harmonized") sent by municipalities to the Ministry of Economy and Finance, according to the law. These estimates are part of the statistics on public administrations produced by Istat, particularly on local finance. The data, divided by region, are provisional and based on the data of 7,524 municipalities. Here to learn more. 

 

The world of MEF 

 

The Economic and Financial Document (DEF), the strategy to get out of the crisis and return to growth

The Council of Ministers approved the Economic and Financial Document (DEF) 2021. The financial tools to support businesses and families amount to 4% of GDP in the first months of 2021, compared to the 6.6% in 2020. The strong boost to public investments, about € 222bn for 2021-2026, 169 in addition to the resources already allocated, will be fundamental in the strategy to exit the crisis and return to development. In the DEF programmatic framework, the GDP could approach the level of 2019 already next year. After the drop of 8.9% recorded in 2020, the GDP could recover 4.5% in the current year and 4.8% in 2022. It could grow by 2.6% in 2023 and 1.8% in 2024. Here the Press Release by MEF. 

 

MEF, requests to the SMEs' Guarantee Fund for over 155 billion 

Active moratoriums on loans amount approximately to 158 billion, out of 1.5 million of suspensions granted; guarantee requests for new bank loans by micro, small and medium-sized enterprises submitted to the Guarantee Fund for SMEs exceed 155 billion. "Garanzia Italia" (Sace) guaranteed loans for € 22.8bn, out of 1,838 requests received. Here the Press Release by MEF.