(ANSA) – ROME, FEB 19 – Bank of Italy Governor Fabio Panetta said Wednesday that the weakness of economic activity in the eurozone is “more persistent than we expected” as he addressed the executive committee of Italian banking association ABI via video link.
“Recovery driven by consumer spending has not happened,” he said.
He added that “after two quarters of zero growth in the eurozone and tension in the manufacturing sector, the labour market is starting to show signs of weakening”. He said that a fall in the amount of money banks are lending was “mainly due to weak demand”.
But Panetta also stressed that “when there is a persistent, prolonged reduction in credit levels, we have to start being more careful and ask ourselves questions”.
He referred specifically to access to credit for small-and-medium-sized enterprises as they are “very important in Italy in terms of employment”. (ANSA).
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“Recovery driven by consumer spending has not happened,” he said.
He added that “after two quarters of zero growth in the eurozone and tension in the manufacturing sector, the labour market is starting to show signs of weakening”. He said that a fall in the amount of money banks are lending was “mainly due to weak demand”.
But Panetta also stressed that “when there is a persistent, prolonged reduction in credit levels, we have to start being more careful and ask ourselves questions”.
He referred specifically to access to credit for small-and-medium-sized enterprises as they are “very important in Italy in terms of employment”. (ANSA).
Read article…
