The Spaniards have become richer than the Italians, writes the Financial Times. This is a encouraging sign for Spain’s economic revival, but it is a worrying news for Italy, the third eurozone economy that has fallen into a political stalemate.
Gross domestic product per capita in Spain has outpaced that of Italy in 2017, according to data released by the IMF this week. They compare countries on the basis of their “Purchasing Power Parity”. The fund also predicts that Spain will be 7 percent richer than Italy over the next five years. A decade ago, Italy was 10 percent richer by the same criterion.
Data and forecasts show how different fates have two of the worst affected countries in the eurozone in the economic crisis over the last decade. While Spain has one of the fastest growing economies in the EU, Italy is sluggish economically.
By 2023, some countries of the former Eastern bloc, including Slovakia and the Czech Republic, are also expected to outrun Italy and become richer per capita, the IMF predicts.
Stagnation is one of the main reasons for the ever-growing political divisions in Italy, where the electorate loses faith in the ability of traditional parties to create jobs and regain growth, the Financial Times noted.