Italy

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Economics

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, many of them family owned. 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 reducing graft, overhauling costly entitlement programs, and increasing employment opportunities for young workers, particularly women. The international financial crisis worsened conditions in Italy's labor market, with unemployment rising from 6.2% in 2007 to 8.4% in 2010, but in the longer-term Italy's low fertility rate and quota-driven immigration policies will increasingly strain its economy. A rise in exports and investment driven by the global economic recovery nevertheless helped the economy grow by about 1% in 2010 following a 5% contraction in 2009. The Italian government has struggled to limit government spending, but Italy's exceedingly high public debt remains above 115% of GDP, and its fiscal deficit - just 1.5% of GDP in 2007 - exceeded 5% in 2009 and 4% in 2010, as the costs of servicing the country's debt rose.

GDP (purchasing power parity):

$1.774 trillion (2010 est.)

country comparison to the world: 11

$1.751 trillion (2009 est.)

$1.847 trillion (2008 est.)

note: data are in 2010 US dollars

 

GDP (official exchange rate):

$2.055 trillion (2010 est.)

 

GDP - real growth rate:

 

1.3% (2010 est.)

country comparison to the world: 164

-5.2% (2009 est.)

-1.3% (2008 est.)

 

GDP - per capita (PPP):

$30,500 (2010 est.)

country comparison to the world: 43

$30,100 (2009 est.)

$31,800 (2008 est.)

note: data are in 2010 US dollars

 

GDP - composition by sector:

 

agriculture: 1.9%

industry: 25.3%

services: 72.8% (2010 est.)

 

Labor force:

 

24.99 million (2010 est.)

country comparison to the world: 25

 

Labor force - by occupation:

agriculture: 4.2%

industry: 30.7%

services: 65.1% (2005)

 

Unemployment rate:

 

8.4% (2010 est.)

country comparison to the world: 99

7.8% (2009 est.)

 

Population below poverty line:

NA%

 

Household income or consumption

by percentage share:

 

lowest 10%: 2.3%

highest 10%: 26.8% (2000)

 

Distribution of family income - Gini index:

 

32 (2006)

country comparison to the world: 107

27.3 (1995)

 

Investment (gross fixed):

19.4% of GDP (2010 est.)

country comparison to the world: 123

 

Budget:

 

revenues: $958.9 billion

expenditures: $1.053 trillion (2010 est.)

 

Taxes and other revenues:

 

46.7% of GDP (2010 est.)

country comparison to the world: 22

 

Budget surplus (+) or deficit (-):

 

-4.6% of GDP (2010 est.)

country comparison to the world: 136

 

Public debt:

 

119.1% of GDP (2010 est.)

country comparison to the world: 8

115.9% of GDP (2009 est.)

 

Inflation rate (consumer prices):

 

1.6% (2010 est.)

country comparison to the world: 51

0.8% (2009 est.)

 

Central bank discount rate:

 

1.75% (31 December 2010)

country comparison to the world: 113

1.75% (31 December 2009)

note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

 

Commercial bank prime lending rate:

 

4.032% (31 December 2010 est.)

country comparison to the world: 165

4.757% (31 December 2009 est.)

 

Stock of narrow money:

 

$1.205 trillion (31 December 2010 est.)

country comparison to the world: 6

$1.299 trillion (31 December 2009 est.)

note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders

 

Stock of broad money:

 

$2.065 trillion (31 December 2010 est.)

country comparison to the world: 9

$1.895 trillion (31 December 2009 est.)

 

Stock of domestic credit:

 

$3.221 trillion (31 December 2009 est.)

country comparison to the world: 9

$3.084 trillion (31 December 2008 est.)

 

Market value of publicly traded shares:

 

$318.1 billion (31 December 2010)

country comparison to the world: 24

$317.3 billion (31 December 2009)

$520.9 billion (31 December 2008)

 

Agriculture - products:

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

 

Industries:

 

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

 

Industrial production growth rate:

 

6.5% (2010 est.)

country comparison to the world: 66

 

Electricity - production:

 

269.6 billion kWh (2009 est.)

country comparison to the world: 14

 

Electricity - consumption:

 

314.5 billion kWh (2008 est.)

country comparison to the world: 13

 

Electricity - exports:

 

2.121 billion kWh (2009 est.)

 

Electricity - imports:

 

44.45 billion kWh (2009 est.)

 

Oil - production:

 

151,800 bbl/day (2010 est.)

country comparison to the world: 45

 

Oil - consumption:

 

1.528 million bbl/day (2010 est.)

country comparison to the world: 16

 

Oil - exports:

 

529,100 bbl/day (2009 est.)

country comparison to the world: 28

 

Oil - imports:

 

1.8 million bbl/day (2009 est.)

country comparison to the world: 11

 

Oil - proved reserves:

 

476.5 million bbl (1 January 2011 est.)

country comparison to the world: 50

 

Natural gas - production:

 

8.298 billion cu m (2010 est.)

country comparison to the world: 44

 

Natural gas - consumption:

 

82.98 billion cu m (2010 est.)

country comparison to the world: 10

 

Natural gas - exports:

 

139 million cu m (2010 est.)

country comparison to the world: 45

 

Natural gas - imports:

 

75.35 billion cu m (2010 est.)

country comparison to the world: 4

 

Natural gas - proved reserves:

 

63.57 billion cu m (1 January 2011 est.)

country comparison to the world: 60

 

Current account balance:

 

-$67.94 billion (2010 est.)

country comparison to the world: 196

-$42.96 billion (2009 est.)

 

Exports:

 

$448.4 billion (2010 est.)

country comparison to the world: 9

$407.5 billion (2009 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 13.2%, France 11.7%, Spain 5.9%, US 5.8%, UK 5.4%, Switzerland 4.6% (2010)

 

Imports:

 

$473.1 billion (2010 est.)

country comparison to the world: 8

$406 billion (2009 est.)

 

Imports - commodities:

 

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

 

Imports - partners:

Germany 16.2%, France 8.5%, China 7.9%, Netherlands 5.4%, Spain 4.5% (2010)

 

Reserves of foreign exchange and gold:

 

$158.9 billion (31 December 2010 est.)

country comparison to the world: 16

$132.8 billion (31 December 2009 est.)

 

Debt - external:

 

$2.684 trillion (30 June 2011 est.)

country comparison to the world: 7

$2.223 trillion (30 June 2010 est.)

 

Stock of direct foreign investment - at home:

$403 billion (31 December 2010 est.)

country comparison to the world: 13

$394 billion (31 December 2009 est.)

 

Stock of direct foreign investment - abroad:

 

$601.4 billion (31 December 2010 est.)

country comparison to the world: 12

$578.1 billion (31 December 2009 est.)

 

Exchange rates:

 

euros (EUR) per US dollar -

0.7715 (2010)

0.7179 (2009)

0.6827 (2008)

0.7345 (2007)

0.7964 (2006)