Page last updated on February 5, 2013
Economy - overview:
Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, 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 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 126% of GDP in 2012, and investor concerns about the broader euro-zone crisis at times have caused borrowing costs on sovereign government debt to rise to euro-era records. During the second half of 2011 the government passed a series of three austerity packages to balance its budget and decrease its public debt. These measures included a hike in the value-added tax, pension reforms, and cuts to public administration. The government also faces pressure from investors and European partners to sustain its recent efforts to address Italy's long-standing structural impediments to growth, such as an inflexible labor market and widespread tax evasion. In 2012 economic growth and labor market conditions deteriorated, with growth at -2.3% and unemployment rising to nearly 11%. Although the government has undertaken several economic reform iniatiatives, in the longer-term Italy's low fertility rate, productivity, and foreign investment will increasingly strain its economy. Italy's GDP is now 7% below its 2007 pre-crisis level.
GDP (purchasing power parity):
$1.834 trillion (2012 est.)
country comparison to the world: 11
$1.877 trillion (2011 est.)
$1.869 trillion (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP country ranks ]
GDP (official exchange rate):
$1.98 trillion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
-2.3% (2012 est.)
country comparison to the world: 207
0.4% (2011 est.)
1.8% (2010 est.)
[see also:
GDP - real growth rate country ranks ]
GDP - per capita:
$30,100 (2012 est.)
country comparison to the world: 45
$31,000 (2011 est.)
$31,000 (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP - per capita country ranks ]
GDP - composition by sector:
agriculture: 2%
[see also: GDP - composition by sector - agriculture country ranks ]
industry:
23.9%
services:
74.1% (2012 est.)
Labor force:
25.28 million (2012 est.)
country comparison to the world: 25
[see also: Labor force country ranks ]
Labor force - by occupation:
agriculture: 3.9%
[see also: Labor force - by occupation - agriculture country ranks ]
industry:
28.3%
services:
67.8% (2011)
Unemployment rate:
10.9% (2012 est.)
country comparison to the world: 117
8.4% (2011 est.)
[see also:
Unemployment rate country ranks ]
Population below poverty line:
(2011)
[see also: Population below poverty line country ranks ]
Household income or consumption by percentage share:
lowest 10%: 2.3%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%:
26.8% (2000)
Distribution of family income - Gini index:
31.9 (2011)
country comparison to the world: 106
27.3 (1995)
[see also:
Distribution of family income - Gini index country ranks ]
Investment (gross fixed):
18.2% of GDP (2012 est.)
country comparison to the world: 118
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $956.6 billion
[see also: Budget revenues country ranks ]
expenditures:
$1.014 trillion (2012 est.)
Taxes and other revenues:
48.3% of GDP (2012 est.)
country comparison to the world: 23
[see also: Taxes and other revenues country ranks ]
Budget surplus (+) or deficit (-):
-2.9% of GDP (2012 est.)
country comparison to the world: 105
[see also: Budget surplus (+) or deficit (-) country ranks ]
Public debt:
126.1% of GDP (2012 est.)
country comparison to the world: 8
120.1% of GDP (2011 est.)
note:
Italy reports its data on public debt according to guidelines set out in the Maastricht Treaty; general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year, in the following categories of government liabilities (as defined in ESA95): currency and deposits (AF.2), securities other than shares excluding financial derivatives (AF.3, excluding AF.34), and loans (AF.4); the general government sector comprises the central government, state government, local government and social security funds
[see also:
Public debt country ranks ]
Inflation rate (consumer prices):
3% (2012 est.)
country comparison to the world: 78
2.9% (2011 est.)
[see also:
Inflation rate (consumer prices) country ranks ]
Central bank discount rate:
1.5% (31 December 2012)
country comparison to the world: 115
1.75% (31 December 2010)
note:
this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
[see also:
Central bank discount rate country ranks ]
Commercial bank prime lending rate:
4.2% (31 December 2012 est.)
country comparison to the world: 162
4.6% (31 December 2011 est.)
[see also:
Commercial bank prime lending rate country ranks ]
Stock of narrow money:
$1.137 trillion (31 December 2012 est.)
country comparison to the world: 6
$1.147 trillion (31 December 2011 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
[see also:
Stock of narrow money country ranks ]
Stock of broad money:
$1.944 trillion (31 December 2012 est.)
country comparison to the world: 10
$1.957 trillion (31 December 2011 est.)
[see also:
Stock of broad money country ranks ]
Stock of domestic credit:
$3.122 trillion (31 December 2012 est.)
country comparison to the world: 8
$3.209 trillion (31 December 2011 est.)
[see also:
Stock of domestic credit country ranks ]
Market value of publicly traded shares:
$431.5 billion (31 December 2011)
country comparison to the world: 27
$318.1 billion (31 December 2010)
$317.3 billion (31 December 2009)
[see also:
Market value of publicly traded shares country ranks ]
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:
0.2% (2011 est.)
country comparison to the world: 147
[see also: Industrial production growth rate country ranks ]
Current account balance:
-$30.3 billion (2012 est.)
country comparison to the world: 184
-$71.87 billion (2011 est.)
[see also:
Current account balance country ranks ]
Exports:
$483.3 billion (2012 est.)
country comparison to the world: 10
$524.9 billion (2011 est.)
[see also:
Exports country ranks ]
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 13.3%, France 11.8%, US 5.9%, Spain 5.4%, Switzerland 5.4%, UK 4.7% (2011)
Imports:
$469.7 billion (2012 est.)
country comparison to the world: 13
$549.6 billion (2011 est.)
[see also:
Imports country ranks ]
Imports - commodities:
engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco
Imports - partners:
Germany 16.5%, France 8.8%, China 7.7%, Netherlands 5.5%, Spain 4.7% (2011)
Reserves of foreign exchange and gold:
$173.3 billion (31 December 2011 est.)
country comparison to the world: 14
