Italy Economy 2007

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 deficit has breached the 3% EU ceiling. The economy experienced low growth in 2006, and unemployment remained at a high level.

GDP (purchasing power parity):
$1.756 trillion (2006 est.)

GDP (official exchange rate):
$1.785 trillion (2006 est.)

GDP - real growth rate:
1.9% (2006 est.)

GDP - per capita (PPP):
$30,200 (2006 est.)

GDP - composition by sector:
agriculture: 1.9%
industry: 28.9%
services: 69.2% (2006 est.)

Labor force:
24.64 million (2006 est.)

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

Unemployment rate:
7% (2006 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:
36 (2000)

Inflation rate (consumer prices):
2.1% (2006 est.)

Investment (gross fixed):
20.8% of GDP (2006 est.)

Budget:
revenues: $845.2 billion
expenditures: $928.2 billion (2006 est.)

Public debt:
106.7% of GDP (2006 est.)

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:
1.5% (2006 est.)

Electricity - production:
278.5 billion kWh (2005)

Electricity - consumption:
307.1 billion kWh (2005)

Electricity - exports:
1.109 billion kWh (2005)

Electricity - imports:
50.26 billion kWh (2005)

Oil - production:
145,100 bbl/day (2004 est.)

Oil - consumption:
1.881 million bbl/day (2004 est.)

Oil - exports:
521,400 bbl/day (2004)

Oil - imports:
2.182 million bbl/day (2004)

Oil - proved reserves:
621.7 million bbl (1 January 2006)

Natural gas - production:
11.49 billion cu m (2005 est.)

Natural gas - consumption:
82.64 billion cu m (2005 est.)

Natural gas - exports:
379.8 million cu m (2005 est.)

Natural gas - imports:
70.45 billion cu m (2005)

Natural gas - proved reserves:
217.3 billion cu m (1 January 2006 est.)

Current account balance:
$-47.31 billion (2006 est.)

Exports:
$417.1 billion f.o.b. (2006 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%, US 7.6%, Spain 7.3%, UK 6.1% (2006)

Imports:
$428.7 billion f.o.b. (2006 est.)

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

Imports - partners:
Germany 16.7%, France 9.2%, Netherlands 5.6%, China 5.2%, Belgium 4.2%, Spain 4.1% (2006)

Economic aid - donor:
ODA, $1 billion (2002 est.)

Reserves of foreign exchange and gold:
$75.77 billion (2006 est.)

Debt - external:
$1.957 trillion (30 June 2006 est.)

Stock of direct foreign investment - at home:
$294.8 billion (2006 est.)

Stock of direct foreign investment - abroad:
$375.8 billion (2006 est.)

Market value of publicly traded shares:
$798.2 billion (2005)

Currency (code):
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Exchange rates:
euros per US dollar - 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002)