Italy's Economy | Italian Economy

Economy - 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: the budget has breached the 3% EU deficit ceiling.

GDP: 1.8% (2004)

GDP - real growth rate: 1.3% (2004 est.)

GDP - per capita: purchasing power parity - $27,700 (2004 est.)

GDP - composition by sector: agriculture: 2.3% industry: 28.8% services: 68.9% (2004 est.)

Population below poverty line: NA

Household income or consumption by percentage share: lowest 10%: 2.1% highest 10%: 26.6% (2000)

Distribution of family income - Gini index: 27.3 (1995)

Inflation rate (consumer prices):

Labor force: 24.27 million (2004 est.)

Labor force - by occupation: agriculture 5%, industry 32%, services 63% (2001)

Unemployment rate: 8.6% (2004 est.)

Budget: revenues: $768.9 billion expenditures: $820.1 billion, including capital expenditures of NA (2004 est.)

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

Industrial production growth rate: 0.7% (2004 est.)

Electricity - production: 261.6 billion kWh (2002)

Electricity - production by source:

Electricity - consumption: 293.9 billion kWh (2002)

Electricity - exports: 900 million kWh (2002)

Electricity - imports: 51.5 billion kWh (2002)

Oil - production: 79,460 bbl/day (2001 est.)

Oil - consumption: 1.866 million bbl/day (2001 est.)

Oil - exports: 456,600 bbl/day (2001)

Oil - imports: 2.158 million bbl/day (2001)

Oil - proved reserves: 586.6 million bbl (1 January 2002)

Natural gas - production: 15.49 billion cu m (2001 est.)

Natural gas - consumption: 71.18 billion cu m (2001 est.)

Natural gas - exports: 61 million cu m (2001 est.)

Natural gas - imports: 54.78 billion cu m (2001 est.)

Natural gas - proved reserves: 209.7 billion cu m (1 January 2002)

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

Exports: $336.4 billion f.o.b. (2004 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 13.6%, France 12.3%, US 8%, Spain 7.2%, UK 6.9%, Switzerland 4.2% (2004)

Imports: $329.3 billion f.o.b. (2004 est.)

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

Imports - partners: Germany 18%, France 10.9%, Netherlands 5.9%, Spain 4.6%, Belgium 4.4%, UK 4.3%, China 4.2% (2004)

Debt - external: $913.9 billion (2004 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: euros per US dollar - 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000)

Fiscal year: calendar year



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