- Lombardy and Veneto contributing to 32% of GDP affected by coronavirus
- Government support package is ready for industry support
Italy is in the middle of a serious situation with context to the coronavirus. The number of cases affected by the virus are on a rise. Italy is one of the countries that is worst hit by the COVID-19 virus. The outbreak of coronavirus was in Northern Italy, which is a significant area for the manufacturing and food sector. The Italian authorities are implementing strict measures to curb the further spread of the virus which includes isolation of towns, cancelling public events and other such measures.
A visible slow down to impact the economic growth
According to the president of the Federalimentare, the Italian food association, the isolation of the Northern region of Italy which is an industrial hub will certainly affect the gross domestic product (GDP). The overall economic development in the Northern part of Italy will slow down due to the constraints of isolation for prevention of the virus. Veneto and Lombardy together contribute to around 36% of Italy’s total food sector. Emilia Romagna, Veneto and Lombardy contribute to a total of around 41% of Italy’s GDP. These places in Northern Italy are affected by the coronavirus which has adversely affected the economic growth of the country.
The Italian government is planning a package for supporting these industries as it may offer immediate financial support among other measures to boost the affected food and manufacturing sector as soon as the crisis gets over.