Press Review #SoseXpress 5-11 June 2021

In Italy, the NRRP represents the occasion to create confidence. It is necessary to explain it in detail, illustrating, for example, the interventions to enhance employment and the participation of women and young people. 

Ignazio Visco, Governor of the Bank of Italy, used these words during the Trento Economy Festival 2021.

The debate of ideas 

 

Efficient digital infrastructures and the Internet is “promoted” to fourth utility

After water, electricity, and gas, the Internet is the fourth utility due to the acceleration of digital knowledge, services, and connections in the whole country during the pandemic and the prolonged lockdowns. The considerable increase in traffic volume has put telecommunication infrastructures to a severe test, showing their limits linked to deep inequalities in the country concerning access to infrastructures and devices to use internet services optimally. Here the article published by “La Voce.info.” 

 

Studies, research and numbers 

 

CNR: luxury tourism will be the first sector to recover in Italy

Luxury tourism is growing despite the economic crisis caused by the pandemic. Thanks to the significant number of wealthy customers, this kind of tourism could become a powerful vehicle for regional development and economic growth. According to a study published in the XXIV issue of the “Report on Italian Tourism” by CNR, data are encouraging: Luxury tourism will probably recover first. By 2025, luxury tourists will increase to 450mln compared to 390mln in 2019. According to the analysis, Italy is the most attractive country. Here for further information. 

 

Istat: retail trade up by 0,4% in April and by 30,4% on an annual basis 

In Italy, consumption is on the rise, despite the decreasing monthly rate. In April, retail trade decreased by 0,4% on a monthly basis in value and by 0,5% in volume. Sales are growing by 1% in value and volume for food products, while are falling for non-food products (-1,5% in value and -1,7 in volume). Istat released these data and underscored that “In the last two months, the total economic result has been supported by a positive trend in the food sector, despite the negative trend in non-food products.” Here the note by Istat. 

 

Eurostat: GDP down by 0,3% and employment down by 0,3% in the Euro area  

In the first quarter of 2021, the Eurozone economy continued suffering a contraction. Eurostat, the EU Statistical institute, estimates that the seasonally adjusted GDP decreased by 0,3% in the Euro area and by 0,1% in the EU compared to the previous quarter. The drop was 1,3% on an annual basis compared to the expected -1,8% of the preliminary estimate. Regarding employment, the situation is not better: The index decreased by 0,3%, a little over 157mln units after an increase of 0,4% in the preceding months. Employment fell by 1,8% on an annual basis at the same rate recorded in the fourth quarter of 2020. Here the press releases by Eurostat.

 

The World Bank estimates GDP growth at 5,6% in this year

According to the World Bank, the global economy will grow by 5,6% in 2021. Despite the recovery, the World Bank explains, the global output will be 2% below the pre-pandemic projections by the end of this year. Per-capita income losses will not be recovered by 2022 for two-thirds of emerging countries and developing economies that continue struggling against the Covid-19 pandemic and its aftermath. Here for more information. 

 

Istat: average monthly spending down by 9,0% compared to 2019

In 2020, the average monthly spending of households residing in Italy was 2,328 euro in current values (-9% compared to 2019). Given the inflation dynamics ( -0,2% the change of consumer price index for the whole Nation), the actual decrease is slightly lower (-8,8%). Moreover, ISTAT explains that the contraction is the most severe since 1997 (starting year of time series) and brought the current expenditure rate to the level of 2000. The household spending decline affects the whole national territory, but the North-west recorded the worst decrease (-10,2%). Here the note by Istat. 

 

Italy: OECD Composite leading indicators (CLIs) continues growing

The OECD Composite leading indicators (CLIs) show that the major advanced economies point to a “steady expansion after leaving behind the most severe pandemic phase.” In May, the composite leading indicators, which anticipate by 6-9 years the economic trends, stood at 100,5 points from 100,3 in April. In Italy, CLIs grow to 101,1 from 100,8 points, in the Eurozone to 100,2 from 99,9 points. Among EU member states, France recorded 98,7 from 98,5 points and Germany 101,6 from 101,2. Here a detailed article on OECD website. 

 

Istat: industrial production up by 1,8% in April 

In April, Istat recorded economic growth for the fifth consecutive month. The seasonally adjusted industrial production index increased by 1,8% compared to March. Between February and April, the average production grew by 1,9% compared to previous months. In April 2021, the calendar-adjusted industrial production index increased by 79,5% compared to April 2020. All leading sectors recorded increasing trends on a monthly basis, among them capital goods (+3,1%), energy (+2,4%), intermediate goods (+1,1%), and, to a lesser extent, consumer goods (+0,5%). Here the note by Istat.  

 

Aibe: Italy ranks ninth out of 18 for attractiveness 

According to the Aibe (Association of the Foreign Banks) Super-index, Italy ranks 9th among the G20 economies for investment attractiveness, with 54,5 on a 1-100 scale. The Super-Index, realized by Aibe in collaboration with Censis, is a weighted synthesis of the leading indicators and most accredited evaluations comparing Italy with other countries.” Analysing its positioning in relation to the various indicators, Italy has a low score in taxation (17th) and demography (15th) due to the employed share of the population. Italy’s performance improves for logistical facilities (7th). Here the press release by Censis. 

 

Italy, the Centre, and the North drove exports in the first quarter 

Istat released the data on exports of Italian regions. In the first quarter of 2021, exports increased in almost all regions: +4,8% in the Centre, +3,8% in the South and the islands, +2,5% in the North-West, compared to the previous quarter. On the other hand, the North-East recorded a slight decrease (-0,5%). In the same period, the Centre recorded a more significant growth on an annual basis (+9,9%), above the national average of the South (+5,1%), lower in the North-East (+4,5%) and the North-West (+2,2%). On the other hand, the islands suffered a considerable contraction in sales (6,8%). Here the note by Istat.  

 

The voice of Stakeholders 

 

Confartigianato: Investments in the road transport sector up by 4,4% but problems in recruiting 

The freight transport sector shows signs of recovery, according to the Focus by Confartigianto Trasporti. In the first quarter of 2021, transport companies recorded a decrease of 6,9% in revenues. However, the investments in this sector grew in the period by 4,4%, confirming a 10,5% increase in the fourth quarter of 2020. Regarding employment, the transport sector shows increasing difficulties in recruiting: in May 2021, driver jobs to cover were 7,911, 38,2% of the total, the highest figure recorded in May in the last three years. Here the study by Confartigianato. 

 

Confesercenti-Assoturismo: tourism restarts from summer, but pre-covid levels are far to reach. 

After a one-year interruption of working activities, the 2021 summer brings the first signs of recovery in the sector. According to estimates, the new arrivals will amount to 33mln. The nights spent in official accommodation establishments are 140mln, with an increase of 20,8% compared to 2020 and a total turnover of 12,8bln Euro. However, the recovery will not reach the pre-Covid levels: the 2019 Summer, the last before the pandemic, recorded an increase of 73,5mln in stays. These data emerge from the preliminary survey conducted by the "Centro Studi Turismo" on a sample of 2,185 tourism companies for Assoturismo Confesercenti. Here the analysis by Confesercenti-Assoturismo.

 

Unioncamere-Anpal: Employment, 1,3 mln hires estimated in the quarter  

Employment is on the rise: the new jobs offered by enterprises are over 560 thousand in June and increase to about 1,3 mln in the quarter June-August. Enterprises try to restart. In particular, manufacturing is planning 163 thousand hires (36 thousand more than last month) and 378 thousand in the quarter; in the current month, the services sector will offer 397 thousand employment contracts (+ 134 thousand hires) and over 900 thousand in the quarter. Manufacturing, tourism, trade, and construction are the driving sectors. These data emerge from the monthly bulletin by the Excelsior IT System, realized by Unioncamere and Anpal. Here the press release by Unioncamere. 

CNA: In April, employment increases among artisans and small enterprises 

According to the CAN (Italian Confederation of Skilled Crafts) Labour Observatory, in April, employment in craft industries and small enterprises grew by 0,4% compared to the previous month. The figure is in line with the national employment trend and the data concerning the birth-death ratio of enterprises that increased by 0,2% compared to last year in the craft industry, the first increase after ten years. CAN estimated a 1,9% increase between April 2020 and April 2021 in the employment rate. Here the analysis by the CNA Labour Observatory.  

Federmeccanica: after the 2020 collapse, metal manufacturing is again in line with the EU countries

In the first quarter of 2021, the production volumes have grown by 15,6% compared to the same period of the previous year and by 0,8% compared to the last quarter of 2020. After the collapse of 2020 (-13,5%), the metal manufacturing production has improved gradually from the summer months to the first months of this year. These results emerge from the 158th Issue of the Study by Federmeccanica on metal manufacturing. However, Federmeccanica points out that the sector suffers a shortage of adequate and qualified personnel, and most companies have difficulties in recruiting the required professional profiles. Here the survey by Federmeccanica.

 

Innovation 

 

Cybersecurity: green light to the new agency for cybersecurity by the Council of Ministers 

The new agency for cybersecurity will initially involve 300 employees that could become about 800 in 2027. The new institution is part of the decree for cybersecurity approved by the Council of Ministers. It aims to improve the security of Information and communications technology (ICT) systems for subjects operating within the national territory, public administrations, operators of essential services (Italian acronym OSE), and digital service providers (Italian acronym FSD). Here to learn more. 

 

Who is afraid of robots? 

The introduction of robots is leading to progressive automation of productive activities. However, only a few can be carried out in a completely independent way. So, is it true that robots will replace the man in mechanical work? In the last years, has employment increased or decrease due to the introduction of technologies? In brief, should we be afraid of robots? A recent study tries to answer these questions. Here a detailed article published by LaVoce.info. 

 

Gender equity 

 

Assolombarda: In Milan, female employment holds better than in the rest of Italy 

In 2020, over 5 thousand women lost their jobs in Milan, 0,7% of employed women. The decrease was more contained than for men (-1,8%). On the other hand, in Italy, women were most affected by the economic crisis. “Your Next Milano,” the new platform operated by Assolombarda, presented a report on female employment during the pandemic highlighting the slight female employment decrease in Milan in 2020 compared to men, a quite different result compared to the national trend. Here the press release by Assolombarda.  

 

Local Authorities 

 

Municipalities and the challenge of the NRRP 

Huge resources of the Recovery Plan will be allocated to municipalities. However, recent experiences have demonstrated, as in case of the European Funds, many Italian municipalities, too small or too large, mainly in the South, have severe difficulties in investing funds. In the next months, municipalities will manage considerable resources provided by the NRRP, and it could be helpful to create structures supporting them in optimize priorities, criteria, and spending methods. Here the article published by LaVoce.info. 

“Anci digitale” aims for artificial intelligence 

Anci Digitale announced a project aiming to create and develop new solutions based on Artificial Intelligence, providing the decision-makers with considerable knowledge, and allowing a clearer vision of the choices to make. According to Anci Digitale, the role of an “intelligent” Public Administration will unfold along three lines: the relationship with citizens with the creation of new services based on the needs highlighted by the pandemic; the relationships between public administrations, trying to share through a scientific approach municipalities’ current experiences; the challenge of the Recovery Funds, considering its impact on investments. Here a detailed article. 

 

The world of MEF 

 

MEF: tax revenues up by 8% in the first four months 

Between January and April 2021, tax revenues amounted to 133,816 mln. Euro, an increase of 10,086 mln euro compared to the same month of the previous year (+8,2%). “Comparing the first quarter of 2021 and the corresponding period of the preceding year, MEF explains, is clearly difficult due to the lockdown from 11 March, 2020 and the measures adopted to face the health emergency.” Here the press release by MEF.  

 

ISAs for 2020 tax year: The Revenue Agency published the guidelines 

The Revenue Agency published circular No. 6 of 4 June 2021, including the guidelines for applying ISAs in the 2020 tax year. The indices underwent a deep revision due to the extraordinary effects of the economic crisis following the Covid-19 health emergency. The circular lays down other grounds for exclusion from the application of ISAs and gives an accurate explanation of the extraordinary revision of all ISAs carried out by the Revenue Agency in collaboration with trade organizations to guarantee a correct application. Here the press release by the Revenue Agency.