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Italy's lack of investment in human capital, information technology and the weak services sector leading to low productivity growth
06/24/2011
The head of Italy's statistics agency Istat, says Italy's manufacturing sector has performed quite well, but it is only one sixth of the economy. The larger services sector has suffered from a lack of investment in human capital and information technology, and is performing poorly, leading to larger expected declines in GDP than anticipated of 2.4% in 2012. There is a need to steer education in the direction of new job opportunities. This suggests that more than the changes to labor laws and related changes taken by Monti and Fornero will be needed to revive the Italian economy.
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