# What effect has the credit crunch had in Italy?



## midlandpete (Oct 17, 2008)

Long term I am thinking of moving to Italy but the exchange rate has put that on hold for now

The credit crunch here in England has reduced my savings income on the one hand but has also reduced the prices here to some extent

When we were in Italy last summer it seemed expensive but what with the exchange rate and stuff here I was wondering if the prices in Italy had come down as I understand the gerneral Italian economic is in crisis

Can anyone give me any pointers

Pete


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## barrov (Jun 8, 2008)

Hi Pete,

I would say that so far Italy has been hit less hard than the UK regards the crisis, as the Italian 'system' has been far more conservative than the British one in recent years. (No boom no bust!)

However, I do fear somewhat for the longer term, as Italy has a lot of manufacturing currently contributing to the economy. I think that as time goes by, the UK could recover pretty quickly whereas this crisis might just mark the beginning of the end for many Italian manufacturers. (With China and India as such veroceous competitors)

As for the exchange rates, the Euro is still currently strong against the GBP. It is hard to tell in what direction that will go as any strengthening of the GBP brought on by my previous guestimate of a quick UK recovery could be wiped out by the Bank of England's 'quantitive easing' gioco...

I guess only time will tell.


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