Economics - Impact of COVID-19 on Italy

Economics
Impact of COVID-19 on Italy economy
and society

Economics 1
Impact of COVID-19 on Italy economy and society
Presently, macroeconomics events generally take place around us on daily basis. The aim
of the paper is to provide the connection between what you learn from the different economic
models and concepts with the real-life events that are happening around. In the recent weeks,
there is presence of COVID-19 (Coronavirus) has affected the economy of entire world. This
virus is spreading across the world but the most affected country from this virus is Italy. The
essay includes the causes of the problem, macroeconomic challenges, impacts, as well as policies
by the government of the country.
In the research, this has been found that coronavirus disease caused by the newly
developed coronavirus. Most of the people infected with the virus will find the moderate
respiratory illness as well as recover without looking for the special treatment. The transmission
is spreading across among people easily which is dangerous for life (WHO, 2020). The spread of
the virus in Italy is increasing because they get transmitted easily which is the major reason
behind the spread of virus at high pace. The symptoms of this virus are slow due to which the
people who are infected with this don’t get to know about it and they come into the transmission
with different people. Those people further spread the virus which becomes dangerous for the
life of numerous people in society.
Across the world, this has been witnessed that Italy is considered as the most affected
countries with the coronavirus outbreak as the number of the cases are rising rapidly in the
country. As per the research, the country has the death toll from the COVID-19 is 5,000 with the
sharp growth in the past few days (WHO, 2020). Considering the spread of the virus among the
people is so quick that the entire operations are stopped. The virus has a devastating impact on

Economics 2
the Italian economy as an industrial output is declining. The fact can’t be denied that the Italy has
a considerable position when it comes to the value of the industrial production in the EU
members states. For example; according to the data of Eurostat, over than 75% of the value of
the sold industrial manufacturing in EU was 28 was produced by 6 member states consists of
Italy, Germany, UK, Spain, France and Poland with 16%, 28%, 9%, 8% and 5% of the overall
EU respectively. The company is accounted for approximately 2.4% ($2.1 trillion) of the global
GDP in the year 2018 (Orion Market Research, 2020).
In the articles, this has been found that as per the International Trade Administration
(ITA), Italy is considered as the third- largest destination for the exports in the market of US that
is totalled of $50.1 billion value of the country’s exports to the US in the year 2018.
Furthermore, Italy’s SME sector is wide due to which this sector is able to contribute
approximately one-third of the value to the economy of the country. Along with this, this sector
is providing the half of the employment within the country but due to the virus operations are not
taking place (Hub staff report, 2020). The structure of the Italy economy is depended on the
SMEs which is possible with the spread of the coronavirus is influencing the economy of the
country. It has been witnessed that the SME generally remain depended on the finances and
loans in order to attain the needs of the business. Due to the exposures facing by the financial
sector of the Italy during COVID- 19, it has been found that the SMEs operations are negatively
influenced which leads to the major decline of the economy of country. In the research, this has
been found that the major challenge for the government is to control this spread because this can
take away the lives of people (World Economic Forum, 2020).
In the research, the classification of the industry is presented which shows that the
economy of the country is segmented into different industries which include automobile, food