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, where unemployment is high. This statistic shows the distribution of the gross domestic product (GDP) across economic sectors in Italy from 2009 to 2019. Amid weakening growth rates across the eurozone, which led to the 19-member currency bloc increasing its GDP by only 0.2% in the final three months of 2018, Italy … A large percentage of its exports go to the following countries: Germany ($61.3 billion), France ($49.8 billion), the US ($40.8 billion), the UK ($28.1 billion), and Switzerland ($22.5 billion). The European Commission said last week that the government’s flagship measures — an early retirement scheme and a citizens’ income (a monthly allowance for certain jobseekers) — failed to trigger the growth the League-5Stars coalition had envisaged. Its economy is the 8th largest in the world when measured by gross domestic product (GDP). In 2015-16, Italy’s economy grew at about 1% each year, and in 2017 growth accelerated to 1.5% of GDP. After World War II, the economy of Italy moved away from agriculture and into industrialization. At the end of Sept. 2018, the ruling coalition comprising the Five Star Movement and the Lega Nord announced their 2019 budget, which increases deficit … The GDP value of Italy represents 1.67 percent of the world economy. In fact, it has the largest luxury goods market in Europe. The Economy Of Italy By Amber Pariona on July 29 2019 in Economics Milan is the financial centre of Italy. The government allows most prices to be set by the market except for electricity, transportation, pharmaceuticals, telecommunications, water, and gas networks. See more from the 2020 Index. ... Italy draws €90bn of orders in stellar week for eurozone debt market. Additionally, the government hopes to increase retirement pensions and offer early retirement programs. By Amber Pariona on July 29 2019 in Economics. Home | Country Rankings | Graph The Data | Heat MapExplore the Data | Downloads | FAQs| About The Index. The economy of Italy is based on capitalism, which means that privately-owned organizations determine which products they will produce without strict government regulation. The new government’s policy priorities—higher spending on research, education, and welfare; introduction of a minimum wage; incentives for small and medium-size enterprises; and pension guarantees for young people—will do nothing to increase economic freedom in Italy. In 2014, the imports to Italy totaled $466 billion, which gave it a positive trade balance of $43.5 billion. Today, this country carries a high debt and has a significant gap between the rich and the poor. Italy has a workforce of 25.7 million and an unemployment rate of 11.4%. The plan also includes operating at a deficit of 2.3% of the GDP. Property Rights 75.4 Create a Graph using this measurement, Judicial Effectiveness 51.3 Create a Graph using this measurement, Government Integrity 62.2 Create a Graph using this measurement. Italy’s economy returned to modest growth in late 2014 for the first time since 2011. Taxes have increased, partly because some exemptions on social security contributions were reduced. Government spending has amounted to 48.4 percent of the country’s output (GDP) over the past three years, and budget deficits have averaged 2.4 percent of GDP. The new coalition will be less confrontational toward EU rules on migration and fiscal policy. Country enjoys its second-lowest borrowing costs on record for a 30-year bond. The principal goods coming into this country, include crude petroleum ($38 billion), cars ($22.9 billion), petroleum gas ($21.6 billion), packaged medicines ($14.9 billion), and refined petroleum ($12.6 billion). However, the recovery has recently weakened and Italy continues to suffer from long-standing social and economic problems. © 2020 by The Heritage Foundation. Of its employed individuals, 68% work in the services industry. Italy’s economic freedom score is 63.8, making its economy the 74th freest in the 2020 Index. It includes the events that follow the announcement of the Minister of the Interior and leader of the League, Matteo Salvini, that he would revoke League's support of the cabinet and ask the President of the Republic to call a snap election. A decree strengthening the foreign direct investment screening mechanism in areas of strategic importance was adopted in 2019. Italy Economy Overview Italy Economic Overview Italy is the world’s ninth biggest economy. In 2019, agriculture contributed around 1.93 percent to … It is also the 3rd largest economy in the Eurozone, which are the European Union countries that utilize the Euro as the national currency. Economic Survey of Italy (April 2019) In recent years, supportive global economic conditions, expansionary monetary policy, structural reforms and prudent fiscal policy supported Italy’s gradual economic recovery. Economic Indicators for Italy including actual values, historical data charts, an economic calendar, time-series statistics, business news, long term forecasts and short-term predictions for Italy economy. Two decades of nearly nonexistent growth is hurting both the country and the continent. In brief. 2019 OECD Economic Surveys: Italy 2019 In recent years Italy achieved a modest recovery, supported by global economic conditions, expansionary monetary policy and structural reforms. The total value of exports and imports of goods and services equals 61.0 percent of GDP. The 2019 Italian government crisis was a political event in Italy that occurred between August and September 2019. Its closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total trade. Other taxes include value-added and inheritance taxes. The average trade-weighted applied tariff rate (common among EU members) is 1.8 percent, with 637 EU-mandated nontariff measures reportedly in force. In September 2019, a new and more stable coalition government, led again by Prime Minister Giuseppe Conte and comprising the populist Five Star Movement and the center-left Democratic Party, obtained votes of confidence in both houses of parliament. Italy has fallen back into recession, for the third time in a decade, as its GDP shrank by 0.2% in the last quarter of 2018. In 2018, the government introduced the so-called Dignity Decree, which includes incentives to hire workers under 35 years old, sets limits on short-term contracts, and makes it costlier to fire workers. Its other important industries include plastics, cement, iron and steel, shipbuilding, space and aircraft, textiles, fashion, and tourism. Additionally, the country will be investing in post-earthquake rebuildings, which should create more jobs as well. Italy’s economic freedom score is 63.8, making its economy the 74th freest in the 2020 Index. Although the judiciary is generally independent, judicial corruption and political interference persist. The Economic Freedom Index of 2015 cited Italy as having high taxes, a slow legal system, and strict labor laws. In Italy, recent data show that its economy fell into recession in the second half of last year. Italy - Italy - Economy: The Italian economy has progressed from being one of the weakest economies in Europe following World War II to being one of the most powerful. Corruption and organized crime continue to be significant impediments to investment and economic growth, despite efforts by successive governments to reduce risks. Economic forecast for Italy The Commission publishes a full set of macroeconomic forecasts for the EU and its Member States in spring (May) and autumn (November) and publishes interim forecasts updating GDP and inflation figures in winter (February) and summer (July). The economy of Italy is based on capitalism, which means that privately-owned organizations determine which products they will produce without strict government regulation. Italy entered a recession in the second half of 2018, making it almost certain that Rome will miss its 2019 fiscal targets. The economy of Italy is the third-largest national economy in the European Union, the eighth-largest by nominal GDP in the world, and the 12th-largest by GDP (PPP). Perhaps as a result, GDP growth has been exceptionally weak for the past five years. This country has a diverse economy that revolves around several industries. Italy’s economy comprises a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, with a legacy of unemployment and underdevelopment. August 14, 2019, 5:00 AM EDT 4:30. Italy is a charter member of NATO and the European Union. In 2017, overall unemployment was 11.4%, but youth unemployment remained high at 37.1%. Real property rights are enforced in Italian courts, but registration costs an average of 4.4 percent of property value. The Italian economy has been mired in the bottom ranks of the moderately free category for most of the years since the inception of the Index in 1995, dragged down by one consistently very low-scoring indicator: government spending. Dombrovskis’ comments come as the European Commission cut its forecast for Italy’s growth in 2019 to 0.2 percent, from a previous prediction … Delays in court proceedings can undermine contract enforcement. Business Freedom 70.4 Create a Graph using this measurement, Labor Freedom 50.9 Create a Graph using this measurement, Monetary Freedom 83.2 Create a Graph using this measurement. ROME — Italy’s economy is sick and the governing coalition can’t agree on the cure — among themselves or with Brussels. OECD Economic Surveys: Italy 2019 Publication (2019) International Trade by Commodity Statistics, Volume 2019 Issue 3 Publication (2019) Strengthening Active Labour Market Policies in Italy Publication (2019) Italy is a founding member of the European Union, the Eurozone, the OECD, the G7 and the G20; it is the tenth-largest exporter in the world, with $632 billion exported in 2019. Restructuring and consolidation of the banking sector continue, and the number of nonperforming loans is declining. The objective behind this initiative is to increase consumer spending and to secure jobs for younger generations. See how Italy compares to another country using any of the measures in the Index. Its strengths are its metallurgical and engineering industries, and its weaknesses are a lack of raw materials and energy sources. All Rights Reserved. During the post-war period and up to 1990, its economy grew slower than other European nations. The overall tax burden equals 42.4 percent of total domestic income. Read more about Italy Economy. The services sector accounts for almost three quarters of total GDP and employs around 65% … Additionally, Italy owns the third largest gold reserve in the world. The country’s current prime minister plans to cut business taxes and increase public investments in an attempt to increase economic performance. Numbers from Italy proved the most dour from Europe so far where the economy shrunk by 0.3% for the three months ending in 2019. More than four-fifths of Italy’s energy requirements are imported. source: World Bank 10Y 25Y The top personal income tax rate is 43 percent, and the top corporate tax rate is 27.5 percent. For 2016, the country has reported a nominal GDP of $1.86 trillion and a GDP per capita of $30,540. ... Top 3 Exported Goods (2019): Industrial Machinery, Motor Vehicles & … Italy's economy was heavily impacted by the global financial crisis and only emerged from recession in 2015, however in 2018 the country’s GDP was still 4% lower than the 2007 level. All maps, graphics, flags, photos and original descriptions © 2020 worldatlas.com, The World’s Largest Oil Reserves By Country, Top Cotton Producing Countries In The World. Tax Burden 56.0 Create a Graph using this measurement, Government Spending 28.5 Create a Graph using this measurement, Fiscal Health 71.1 Create a Graph using this measurement. Italy's economy returned to growth in the first quarter of the year, pulling clear of its third recession in a decade, while the unemployment rate receded in March, data showed on Tuesday. Its overall score has increased by 1.6 points, primarily because of an improved government integrity score. By . The Gross Domestic Product (GDP) in Italy was worth 2001.24 billion US dollars in 2019, according to official data from the World Bank and projections from Trading Economics. However, Spain unlike its EU peers offered sunny news. Italy’s diversified economy is bifurcated between the highly developed industrial North, dominated by private companies, and a less-developed, highly subsidized agricultural South, where unemployment is higher. The largest trading partners, in order of mark… A recession in Italy and weak growth across Europe could force the European Central Bank to rule out interest rate hikes this year. This is followed by 28% in industry and 4% in agriculture. 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. Its economic structure relies mainly on services and manufacturing. Italian economy Add to myFT. After having experienced the deepest recession since the second world war, in 2021 the Italian economy will begin a fragile economic recovery, but a return to pre-crisis levels is unlikely before 2024. The residents in this country generally enjoy a high quality of life per the Human Development Index. significant repercussions on Italy’s industrial output due to the strong links between manufacturers in the two countries. The European Commission forecasts also revealed Tuesday that Italy — the euro zone's third largest economy — will be the slowest growing economy in the EU during 2019… Italy’s Economic Rot Is Europe’s Problem, Too. Trade Freedom 86.4 Create a Graph using this measurement, Investment Freedom 80.0 Create a Graph using this measurement, Financial Freedom 50.0 Create a Graph using this measurement. This country exported $509 billion worth of goods in 2014, making it the 8th largest export economy in the world. Italy’s economy comprises a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, with a legacy of unemployment and underdevelopment. Italy also has a sizable underground economy… Italy is well known for its business, agriculture, and luxury automobile sectors. Most of these imports originate in these countries: Germany ($70.2 billion), France ($39.5 billion), China ($33.2 billion), the Netherlands ($27.3 billion), and Russia ($22.9 billion). But as the sun begins to cool, so do hopes of a full recovery for Italy's decimated 2020 tourism season. Some of its major exports include packaged medicines ($22.9 billion), refined petroleum ($16.7 billion), vehicle parts ($14.3 billion), cars ($12.1 billion), and valves ($9.3 billion). Public debt is equivalent to 132.1 percent of GDP. The looming storm is all down to Italy's mounting debt levels. Migration remains the most highly charged political issue, and the prior government’s changes in immigration policy led to a significant decline in migrant arrivals. Italy is ranked 37th among 45 countries in the Europe region, and its overall score is well below the regional average and slightly above the world average. Winter is coming, and with it what is expected to be a full-blown economic catastrophe. In 2019 the economy stagnated due to several factors, including the uncertain political situation and the Eurozone slowdown. The recession of the latter 2000’s was particularly hard on the economy here. Luxury automobile sectors investments in an attempt to increase economic performance 637 EU-mandated nontariff reportedly. Sunny news more jobs as well of strategic importance was adopted in 2019 the economy of Italy is based capitalism. 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