Economic Trends/Outlook in Italy
Italy had experienced a lower growth than the European average, and it was severely affected by the global crisis, its economy reduced to -5% in 2009. However, it benefited from the revival in global demand and the return of confidence. The exports and investments recovered in 2010, providing a growth rate evaluated at 1% of the GDP. According to the forecast, the growth rate should remain weak in 2011.
The government has launched different social measures in order to try to help those who are in the most unfavorable conditions, which had a direct consequence on increasing dramatically the public expenditures of a country that has one of the highest public debts in the world (more than 100% of the GDP). The government has, then, adopted a rigorous plan of EUR 24 billions in three years, it has frozen salaries and increased taxes with the purpose of attempting to bring the public deficit to 2.7% in 2012 and reducing its debt/GDP ratio. The priority is also given to the fight against tax avoidance in this country where the black economy is very significant.
The unemployment rate has risen to about 8.7%. Regional inequity is very pronounced, specially between the north, which is very industrialized and dynamic, and the rural and poor regions of Mezzogiorno in the south.
|GDP (billions USD)||2,116.64||2,055.11e||2,181.36e||2,245.91e||2,304.31e|
|GDP (Constant Prices, Annual % Change)||-5.2||1.3e||1.1e||1.3e||1.4e|
|GDP per Capita (USD)||35,251||34,059e||35,985e||36,890e||37,698e|
|General Government Balance (in % of GDP)||-3.9||-2.9e||-2.8e||-2.2e||-2.4e|
|General Government Gross Debt (in % of GDP)||116.1||119.0e||120.3e||120.0e||119.7e|
|Inflation Rate (%)||0.8||1.6e||2.0e||2.1e||2.0e|
|Unemployment Rate (% of the Labor Force)||7.8e||8.5e||8.6e||8.3e||7.9e|
|Current Account (billions USD)||-71.27e||-59.25e||-57.83e||-57.66e||-|
|Current Account (in % of GDP)||-3.4e||-2.8e||-2.7e||-2.6e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
The agricultural sector contributes to about 2% of the Italian GDP. Italy is the biggest European producer of rice, fruits and vegetables, and also the world's biggest producer and exporter of wine. The country is one of the major agricultural powers in the European Union. However, Italy has limited natural resources. The country has to import most of the raw materials required for production and more than 80% of its energy resources.
Italy's fabrics industry is made up mostly of small and medium family businesses. More than 90% of the industrial companies have less than 100 employees. In this context, the country is suffering from a decline in global competitiveness. The manufacture of luxury goods (haute couture, cars, delicatessen foods) represents a significant part of the Italian industry. The country is the prime exporter of luxury goods. Its main industries deal with precision machinery, motor vehicles, chemical products, pharmaceutical products, electrical items, fashion and clothing.
The services sector contributes to 70% of the GDP. Tourism plays a major role, Italy is the third most-visited European country, after France and Spain.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||3.8||29.7||66.3|
|Value Added (in % of GDP)||1.8||25.1||73.1|
|Value Added (Annual % Change)||-3.1||-13.4||-2.5|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Moderately free
- World Rank:
- Regional Rank:
Sources of General Economic Information
Ministry of the Economy and Finance
Ministry of Economic Development
Ministry of Commerce
Ministry of Agricultural and Forestry Policies
Ministry of Foreign Affairs
- Statistical Office
National Institute of Statistics (Istat)
- Central Bank
Bank of Italy
- Stock Exchange
Italian Stock Exchange
- Main Online Newspapers
La Repubblica (only in Italian)
Corriere della Sera (only in Italian)
La Stampa (only in Italian)
Il Tempo (only in Italian)
Any Comments About This Content? Report It to Us.
This report overviews the characteristics of the grocery retail sector and how best to place U.S. products in the Italian market
Foreign Agricultural Service on 26 Jan 2013 related to Economic Trends/Outlook in Italy
2012 Country Commercial Guide for U.S. Companies doing business in Italy.
U.S. Commercial Service Israel on 27 Apr 2012 related to Economic Trends/Outlook in Italy
Italy's fruit production (2012/13) is forecasted to decrease due to adverse weather conditions.
Foreign Agricultural Service on 23 Jan 2013 related to Economic Trends/Outlook in Italy
Find the related Italian companies with Kompass:
Part of USDA, the United StatesThe Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture (USDA) works to improve foreign market...
U.S. Department Of Commerce, Israel