Before the coronavirus hit Italy, its economy barely rebounded from the Panic of ’08.
Now, following the government’s decision to lock down the entire nation, it risks diving deep into recession.
Tourism, which accounts for 13 percent of its GDP, is dead. Italian manufacturers are flooded with canceled orders – perhaps not entirely a bad thing because parts shipments from China have all but ceased.
Most worrying is that Italian consumers have slashed spending as part of the negative “virus economy.”
New car sales were off 8.8 percent in February. With the nation now in lockdown, sales will worsen in March.
