Economy of Italy
Overview
Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with 20% unemployment.
Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. But the leadership faces a severe economic constraint: Italy's official debt remains above 100% of GDP, and the government has found it difficult to bring the budget deficit down to a level that would allow a rapid decrease in that debt.
The economy continues to grow by less than the euro-zone average and growth is expected to decelerate from 1.9% in 2006 and 2007 to under 1.5% in 2008 as the euro-zone and world economies slow.
GDP
Real Growth Rate
2%
Per Capita
USD 31,000
From Agriculture
2%
From Industry
29%
From Services
69%
Labour Force
Available for Work
24,860
Working in Agriculture
5%
Working in Industry
32%
Working in Services
63%
Unemployment Rate
7%
Population Below Poverty Line
0%
Inflation Rate
2%
Investment as Percent of GDP
21%
Budget
Revenues
USD 976,000 (m)
Expenditures
USD 1,029,000 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish.
Core Industries
Tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics.
Exports
Value
USD 474,800 (m)
Commodities
Engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals.
Partners
Germany 13.2%, France 11.7%, US 7.6%, Spain 7.3%, UK 6.1% (2006).
Imports
Value
USD 483,600 (m)
Commodities
Partners
Germany 16.7%, France 9.2%, Netherlands 5.6%, China 5.2%, Belgium 4.2%, Spain 4.1% (2006).
External Debt
USD 2,345,000 (m)
Fiscal Year
Calendar year
