While China’s economy has already taken a hit due to closed manufacturing sectors, Italy seems to be second in line to follow suit. Italy was the first European country besides South Korea that has reported a major surge in cases surrounding coronavirus, with numbers quickly climbing from the tens to the hundreds.
At the time of writing, the towns in Lombardy in Northern Italy face the same lockdown measures as Wuhan, with a very a smaller number of people allowed to roam the streets. Lombardy alone accounts for 40% of Italy’s industrial output. A lockdown of the town has put Italy in a financial headlock with the economy leading to millions of currency being bled from the economic total.
Milan serves as the country’s key center for finance and other valuable range of services. While at the moment, Milan is not processed in a lockdown, major centers around the city that prelude Milan such as the cathedral (the Duomo) and the Opera house La Scala have been closed.
Milan is also known as the world’s most major fashion center. While business went as usual with the Fashion Week in late February, Giorgi Armani’s collection was displayed to a show which boasted a scarce audience.
In 2019, the total production of goods and services was approximately as par as it was for the last 15 years. Unemployment also lies deep within Italy’s economy, especially ranging havoc among teens under 25 marking at a 28.9%. Last year Italy’s GDP fell by 0.3%. The following aspects are laid out to paint a picture of average Italy’s economic status that was being prevailed before the virus.
A certain Prof Roberto Perotti of Bocconi University in Milan quotes, “GDP will almost certainly shrink this quarter as well, so Italy will technically be in a recession [often defined as two consecutive quarters of declining GDP]. It will probably shrink for the whole year,”