Italy is now in a triple-dip recession. But it didn't get there by itself. Yes, the economy's long slide reflects Italian leaders' failure to confront the country's loss of competitiveness; but it is a failure that is widely shared in Europe.
When the financial crisis erupted in the fourth quarter of 2007, Italy's GDP plummeted by 7 percent, then picked up by 3 percent, dropped again by 5 percent, rebounded by a measly 0.1 percent, and lately, during the first half of this year, shrank again, this time by 0.3 percent. Altogether, Italian GDP has contracted by 9 percent during the past seven years.
Industrial production, moreover, has plunged by a staggering 24 percent. Only thanks to stubbornly persistent inflation has Italy's nominal GDP managed to remain constant. Overall unemployment has climbed to 12 percent, while the rate for youth not attending school has soared to 44 percent.