Data encouraging
Bank of Italy has released its latest semi-annual Financial Stability Report. What emerges is a fairly clear picture, many positive aspects. Essentially, the instability of the international situation has led to a reduction in interest rates a bit 'everywhere, including Italy. This has encouraged a greater number of consumers to resort to various types of loans. At the same time, many have decided to invest accepting a higher default rate, with the hope of getting better returns. It seems that the economic situation of Italian families is still relatively stable. During the first half of 2019, the gross financial wealth has marked a + 2.7%, and growth continued during the summer months.
The use of loans through banks and finance has however a scenario a bit 'more complex. In general, the Italian debt owed to credit institutions increased by 3.5% (as of September 2019, compared with 2018), so there is a greater use of such tools. The still problematic real estate situation, however, has slowed growth. However, mortgage rates continued their descent. The Italian families prefer, however, to avoid surprises and unexpected, preferring to rely on fixed rates. We consider that, in 2019, over 60% of mortgages in Italy were entered into with interest at fixed rates.
According to the forecast of the Bank of Italy, at the end of 2020 we will have witnessed a further reduction in interest rates. This will bring the Italian families to greater stability and an increase in disposable income. The number of households deemed "vulnerable" would therefore have to fall to 1.8% of the total.
But be careful, because still considered a negative international situation, the risky debt could rise up to 11%. Obviously these forecasts, we must see how it will evolve the international scene and what impact it will have on the internal situation in our country.
The use of loans through banks and finance has however a scenario a bit 'more complex. In general, the Italian debt owed to credit institutions increased by 3.5% (as of September 2019, compared with 2018), so there is a greater use of such tools. The still problematic real estate situation, however, has slowed growth. However, mortgage rates continued their descent. The Italian families prefer, however, to avoid surprises and unexpected, preferring to rely on fixed rates. We consider that, in 2019, over 60% of mortgages in Italy were entered into with interest at fixed rates.
According to the forecast of the Bank of Italy, at the end of 2020 we will have witnessed a further reduction in interest rates. This will bring the Italian families to greater stability and an increase in disposable income. The number of households deemed "vulnerable" would therefore have to fall to 1.8% of the total.
But be careful, because still considered a negative international situation, the risky debt could rise up to 11%. Obviously these forecasts, we must see how it will evolve the international scene and what impact it will have on the internal situation in our country.
