Financial Stability 2023, the Bank of Italy survey: global economic fragility weighs on Italian companies
In the recent Bank of Italy investigation referable to Financial stability 2023 it is observed as the our companies are feeling the effects of the weakness of the world economyalbeit less accentuated than expected for the end of 2022, and the growth of interest rates.
Rising inflation, the sudden rise in interest rates and geopolitical tensions thus continue to affect economic growth. However, the recovery of production activity has allowed for real growth in the companies’ Gross Operating Margin, in line with the 2021 data.
Revenues, negative forecasts for large companies and services
However, the forecasts for revenues for 2023 worsen, especially among larger companies and those of services, as well as the earnings prospects of listed companies. Financial leverage unchanged (the use of third-party capital for financing purposes). The financial structure of the companies, however, appears adequate to deal with the impact of rising interest rates: there are few realities with more variable-rate and higher-risk loans.
Despite unchanged demand, in the face of tighter financing conditions, loans are declining, especially among riskier and smaller companies, now in negative territory compared to 2022. The decline among large companies is instead due to the repayment of loans disbursed over time. Cash flows remain at adequate levels, with signs of worsening especially in the manufacturing and construction sectors.
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