Italy’s economy shrank again in 2014, and is expected to only recover slowly. Political stability has improved a bit and the government’s reform agenda is promising. Some major reforms have already been achieved, but progress is and will remain slow.
Strong institutions and policymaking support (potential) GDP growth, while the country’s small size and ageing pose challenges. Healthy balance sheets and a solid international creditor position reduce Singapore’s susceptibility to (global) shocks.