Press Review #SoseXpress 3-9 July 2021

We must face the issues of the technological revolution, the profound changes that are taking place in the economy; we are sure that all this will strengthen our presence in the Union and the prospects of the new generations. 

From the speech of the President of the Republic, Sergio Mattarella, during his institutional visit to France. 

The debate of ideas 

 

Let’s teach young people to manage money and the environment

Which aptitude have younger generations towards money and environment? Today, this crucial issue is at the centre of the political agenda since education for sustainability must focus on economic-financial education. In this regard, a study suggests that economic-financial education could become a tool to teach sustainability. Here to learn more. 

 

Studies, research and numbers

 

Global Economy: The report by Intesa San Paolo and Centro Einaudi 

The pandemic has profoundly changed the economic and political balance and relations. In this regard, the 25th Report by Intesa San Paolo and Centro Einaudi, presented in Turin on Thursday 8 July, analyzes what happened in the past months and outlines the post-pandemic economic trends to grasp future trends and investigate new opportunities. Here to learn more. 

Extra-EU Exports support 37 million jobs in the EU  

According to Eurostat, in 2019, the employment of 37 million people was supported by exports to non-member countries. As a share of total employment, the employment in each of the EU Member States that was supported by exports to non-member countries ranged from around one in eight persons employed in Greece (12.2 %) and Portugal (12.5 %) to nearly three out of every ten in Luxembourg (29.1 %) and Ireland (29.4 %). The Statistical Institute explains that, in relative terms, this export-supported employment represented 17.9 % of total employment (209 million), equivalent to just over one in six persons employed across the EU in 2019. Here the press releases by Eurostat 

EU: in the year of the Covid-19 outbreak, employment income decreased by 7%, and in Italy, the risk of poverty increased

In 2020, the COVID-19 outbreak caused a 7% decrease in the median employment income compared to 2019. According to Eurostat data, the median disposable household income and the at-risk-of-poverty rate remained stable, with varying trends across countries. Among the EU Member states, Italy recorded the most significant increase in the risk-of-poverty rate. The losses in employment income were largely due to the unprecedented rise in the number of workers absent from work or working reduced hours. Here the press releases by Eurostat. 

IHS MARKIT Italy: Service Pmi continues to rise in June

The IHS MARKIT Italy Service PMI index rose to 56.7 points in June from 53.1 in May, recording the second monthly consecutive increase in the service sector, the fastest growth since January 2018. In June, the production composite index recorded 58.3 compared to 55.7 in May, the most rapid production increase in the Italian private sector since January 2018. Here to learn more. 

PROMETEIA: Italian GDP above expectations, +5.3% in 2021  

This year, the Italian GDP will increase by 5.3%. The figure was revised upwards from +4.7% of March and is clearly above the Eurozone growth rate of 4.3%. According to Prometeia experts, a period of great potentialities begins for Italy: "after recovering the pre-crisis levels, next year the economy could grow in the following two years by 2% per year on average, twice the increase in the previous ten years." According to Prometeia, the 205 bln of the NRRP and the 30 bln of the supplementary fund will be the decisive driver for the country's future relaunch," an effective plan, for the duration and types of expenditure, supporting for above 80% public and private investments. Here to learn more. 

IHS MARKIT: Italian construction sector continues to recover in June

According to the latest PMI® data from IHS Markit, the Italian construction sector continued its path to recovery during the second quarter. In June, it was 57.9, the highest value since the second quarter of 2001. Output rose sharply again amid a near-record expansion in new orders. As a result, firms again took on additional staff in June. Supply disruption worsened further, however, adding to inflationary woes amid widespread reports of material shortages. Here a detailed article. 

Eurostat: retail trade up by 4.6% in both the euro area and the EU 

n May 2021, the seasonally adjusted volume of retail trade rose by 4.6% in both the euro area and the EU, compared with -3,9% in April 2021 (revised from -3,1), according to estimates from Eurostat, the statistical office of the European Union. The figure exceeded analysts’ expectations forecasting an 4,4% increase. Sales recorded a 9%increase on an annual basis compared to +23,3% in the previous month (revised from +23,9%) lower than analysts’ consensus (+8,2%). Among the 27 Member States, sales grew by 4,6% on a monthly basis and 9,2% on an annual basis. Here the press releases by Eurostat. 

OECD sounds alarm about youth unemployment in Italy

In Italy,” the youth employment rate went from the already high level of 28.7% to 33.8% in January 2021.” The OECD released these data in the report Employment outlook 2021 highlighting that Italy was one of the few OECD countries in which youth unemployment remained close to its peak level throughout the spring of 2021. Youth unemployment for the OECD as a whole, rose to 11.4%, peaked at 19% and came back down to 15% in April 2021. The OECD forecast that Italy's general unemployment rate would get back to pre-COVID levels in the third quarter of 2022. Here the note by Oecd. 

EU: Italy's GDP, + 5% in 2021 and + 4.2% in 2022 

The EU Commission has revised Italy's growth estimates upwards: GDP will rise to + 5% in 2021 and to 4.2% in 2022. According to the EU, the easing of restrictions and mobility has led to a considerable rebound in the economic activity, stronger than expected. In the spring, the Commission forecast an increase of + 4.2% in 2021 and + 4.4% in 2022 for Italy. "The improving health situation was the base for solid and sustained expansion. Furthermore, the decreasing uncertainty of businesses about the prospects for demand and the implementation of the NRRP encouraged public and private investments, which will remain the main engine of growth, " the EU Commission writes in the forecasts on Italy's GDP. Here to learn more. 

Istat: in May, retail trade up by 0.2% on a monthly basis, 13.3% on an annual basis 

Istat estimates that, in May 2021, retail trade grew by 0.2% in value and + 0.4% in volume compared to the previous month, specifying that on an annual basis, retail trade increased by 13, 3% in value and 14.1% in volume, thanks to the growth of the non-food sector (+ 28.1% in value and + 28.0% in volume). On the other hand, sales of food products decreased (-1.5% in value and -0.6% in volume). Among non-food goods, the largest increases were recorded for clothing and fur (+ 82.3%) and shoes, leather and travel items (+ 59.7%). All distribution channels increased, large-scale distribution (+8.3%), small-scale distribution (+ 19.5%),  non-store retail sales rose (+ 19.4%) and e-commerce (+ 7.2%). Here the Note by Istat. 

 

The voice of Stakeholders 

 

 

Confartigianato: Still weak recovery for 859 SMEs in manufacturing and construction sectors

For 859 SMEs in the manufacturing and construction sectors, employing 3.1 mln workers equal to 28.2% of total employment, recovery seems to lag. The Confartigianto Study Center released these results based on Istat data. The manufacturing sector recorded a decrease of 3.8% in December 2020 compared to November, while manufacturing production stagnates (-0,2%). Positive signals come from turnover (+0,5% compared to November) and orders (increasing by1.7% compared to November). Here the note released by the Confartigianato Study Center. 

Confartigianato: "Made in Italy" up by + 3.6% compared to pre-Covid period

According to the report realized by Confartiginato Study Center on food and beverage export, the sector shows positive signs in a context characterized by improved health conditions, thanks also to the vaccination campaign. Investments and the construction sector drive the recovery. At the same time, manufacturing production supports exports which, in the first four months of 2021, increased by 3.6% compared to the same period of 2019, before the Covid-19 outbreak. Here for more information. 

 

Innovation 

 

SMEs to the Covid test: how to innovate the business models by digital technologies

Small and Medium Enterprises (SMEs) have demonstrated great flexibility and adaptability in changing competitive scenarios to survive on the “made in Italy” markets. The pandemic squeezed supply chains, production processes, and, above all, the relationships with near or far customers. Nevertheless, SMEs have paid particular attention to the connecting potential of digital technologies to support new working and selling methods. Here to learn more. 

 

Local Authorities 

 

The income? The Postal Code can reveal it  

For the first time, data on cities’ incomes, corresponding to various zip codes, have been published. The information refers only to 2019 incomes subject to Irpef declared in 2020 (excluding incomes subject to substitute taxes). The data are divided by neighborhood, so it is possible to monitor disparities. According to the analysis, the larger the residential area is, the greater the inequalities are. These interesting results can help administrations to monitor the trend of territorial inequalities. Here a detailed article published by “La Voce.” 

Local Authorities: 62.8% of the tourist tax goes to the North 

The "Centro Studi Enti Locali" published a dossier on a very little-known local tax: the tourist tax. The study is based on the data published in the 2019 Report by the Federalberghi Observatory on Local Taxation and aimed to understand how this tax is applied and who is required to pay it. Among 1,041 municipalities applying this tax, Corvara in Badia is at the top, collecting a per capita revenue of 982 euros. Above all, the study highlighted that 62.8% of the total tourist tax revenue was allocated to the Northern Regions. Here to learn more. 

 

The world of MEF

 

MEF: In the first five months of the year, 169.6 bln tax revenue 

In the period January-May 2021, MEF estimates tax revenue for 169,667bln euros, with an increase of 19,936mln compared to the same period of last year (+13.3%). MEF explains that the comparison between the first five months of 2021 and the corresponding period of the previous year shows elements of heterogeneity due to the economic measures adopted by the Government to mitigate the effects of the lockdown. In the same period, direct taxes rose to 78,895mln euros, increasing by 13,262mln euros (+20,2%) largely due to VAT revenue ((+10.709mln euros +26,6%) and, in particular VAT on domestic trade (+9.583mln euros). Here the note by MEF. 

MEF-CDP: Green light for “Patrimonio Rilancio”  

MEF announced that "Patrimonio rilancio" is operational. The Ministry of Economy and Finance aims to support Italian companies, even unlisted, with a turnover above 50 million euros through this new fund managed by Cassa Depositi e Prestiti (Italian deposits and loans fund – CDP). The goal of "Patrimonio rilancio" is to foster the recapitalization of large and medium-sized companies hit by the Covid-19 emergency and includes financial solutions to strengthen their capital through innovative application and assessment procedures that are completely digital to be user-friendly and rapid. Here the press release by MEF. 

MEF: the Financial Education Month, green lights to selections 

Green lights for # OctoberEdufin2021 applications. The fourth edition of the Financial Education Month, promoted by the Committee for the Planning and Coordination of Financial Education Activities, will be back from 1 to 31 October. Central and peripheral public administrations, non-profit institutions, and private organizations and companies may join the initiatives, including, for example, training programs dedicated to specific segments of the population; conferences, seminars, events, days/weeks dedicated to financial, insurance, and pension education and other cultural initiatives. Here to learn more.