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The Economy of Italy

Italian Economy

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Economy - overview: Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy has moved slowly on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system and these conditions will be exacerbated by the recent global financial crisis. The Italian government is seeking to rein in government spending, but the leadership faces a severe economic constraint: Italy's official debt remains above 100% of GDP, and the fiscal deficit - 1.5% of GDP in 2007 - could approach 3% in 2009 as political pressure to stimulate the economy and the costs of servicing Italy's debt rise. The economy will continue to contract through 2009 as the global demand for exports drop.

GDP:

GDP - real growth rate: -0.7% (2008 est.) 1.4% (2007 est.) 1.9% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 2% industry: 26.7% services: 71.3% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.3% highest 10%: 26.8% (2000)

Distribution of family income - Gini index: 32 (2006)

Inflation rate (consumer prices):

Labor force: 25.09 million (2008 est.)

Labor force - by occupation: agriculture: 4.2% industry: 30.7% services: 65.1% (2005)

Unemployment rate: 6.8% (2008 est.)

Budget: revenues: $1.139 trillion expenditures: $1.203 trillion (2008 est.)

Industries: tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics

Industrial production growth rate: -0.2% (2008 est.)

Electricity - production: 292.1 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 316.3 billion kWh (2006 est.)

Electricity - exports: 1.916 billion kWh (2007 est.)

Electricity - imports: 34.56 billion kWh (2007 est.)

Oil - production: 166,600 bbl/day (2007 est.)

Oil - consumption: 1.702 million bbl/day (2007 est.)

Oil - exports: 616,700 bbl/day (2005)

Oil - imports: 2.223 million bbl/day (2005)

Oil - proved reserves: 406.5 million bbl (1 January 2008 est.)

Natural gas - production: 9.706 billion cu m (2007 est.)

Natural gas - consumption: 84.89 billion cu m (2007 est.)

Natural gas - exports: 68 million cu m (2007 est.)

Natural gas - imports: 73.95 billion cu m (2007 est.)

Natural gas - proved reserves: 94.15 billion cu m (1 January 2008 est.)

Agriculture - products: fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish

Exports: $566.1 billion f.o.b. (2008 est.)

Exports - commodities: engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals

Exports - partners: Germany 12.9%, France 11.4%, Spain 7.4%, US 6.8%, UK 5.8% (2007)

Imports: $566.8 billion f.o.b. (2008 est.)

Imports - commodities: engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco

Imports - partners: Germany 16.9%, France 9%, China 5.9%, Netherlands 5.5%, Belgium 4.3%, Spain 4.2% (2007)

Debt - external: $1.06 trillion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year: