Gloom descending

Italy’s traditional economic base of small firms making high-quality goods is under threat, its leader has been accused of bribery and the grey economy is thriving.

Italy’s economy is experiencing subdued levels of investment and confidence this year. GDP shrank by 0.1 per cent in the first and second quarters of 2003, growth forecasts for the year were cut to 0.3 per cent and the 2004 recovery prospect is at 1.2 per cent.

"Investment has been very low for a long time, and exports are doing badly… because a lot of industry...

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