Visco: "Recovery at a better pace than expected, but high uncertainty due to the increase in infections"

"The recovery of economic activity is proceeding at a better pace than expected only a few months ago: the growth of the Gross Domestic Product will exceed 6% this year, recovering more than two thirds of what was lost in 2020. However, the uncertainty, reflecting above all a health situation in Europe which has once again become an important source of concern, with consequences that are difficult to anticipate today, even if the short-term indicators continue to be generally favorable ”.

This was stated by Ignazio Visco, speaking at the conference "The European financial system in the post-Covid perspective", organized in Milan by the European Association for Banking and Financial Law.

The governor of the Bank of Italy confirmed the optimistic forecasts of the Economy Minister Daniele Franco and the European Commission, which in recent months have revised upwards the estimates on Italian GDP for 2021. The recovery is therefore on track and it is important to avoid new closures and restrictions that could bring consumption and investment to a halt. Also of concern is the discovery of the new variant of Covid-19 in South Africa , with 32 mutations.

For this Visco underlines the importance of the success of the vaccination campaign. "The new increase in infections in Europe and other countries still moves the post-Covid perspective forward. Unlike last year, societies in the advanced world are now less vulnerable thanks to the massive vaccination campaigns that have been successful. We must continue. decisively in the immunization programs and extend them to the areas that have benefited less. There are two issues: you have to hurry and you have to do it globally, because the definitive overcoming of the pandemic can only take place on a global level ", explained the governor .

Finally, Visco highlighted the pitfalls hidden in the use of cryptocurrencies: “Globally, the risks to financial stability deriving from the development of the crypto-assets market are increasing. Although the latter represent a small share of the total value of financial assets, their capitalization increased 3.5 times in 2021, reaching 2.8 trillion dollars ", he added, highlighting how" the use of digital technologies in 'offering of financial products and services must take place in conditions of safety for investors, issuers and the economy in general ”.

(Unioneonline / F)