Italy Economy 2008

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: Italy's official debt remains above 100% of GDP, and the government has found it difficult to bring the budget deficit down to a level that would allow a rapid decrease in that debt. The economy continues to grow by less than the euro-zone average and growth is expected to decelerate from 1.9% in 2006 and 2007 to under 1.5% in 2008 as the euro-zone and world economies slow.

GDP (purchasing power parity):
$1.8 trillion (2007 est.)

GDP (official exchange rate):
$1.862 trillion (2007 est.)

GDP - real growth rate:
1.9% (2007 est.)

GDP - per capita (PPP):
$31,000 (2007 est.)

GDP - composition by sector:
agriculture: 1.9%
industry: 28.8%
services: 69.3% (2007 est.)

Labor force:
24.86 million (2007 est.)

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

Unemployment rate:
6.7% (2007 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:
33 (2005)

Inflation rate (consumer prices):
1.7% (2007 est.)

Investment (gross fixed):
20.6% of GDP (2007 est.)

Budget:
revenues: $976 billion
expenditures: $1.029 trillion (2007 est.)

Public debt:
105.6% of GDP (2007 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:
1.3% (2007 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:
164,800 bbl/day (2005 est.)

Oil - consumption:
1.732 million bbl/day (2005 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 est.)

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:
-$57.94 billion (2007 est.)

Exports:
$474.8 billion f.o.b. (2007 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:
$483.6 billion f.o.b. (2007 est.)

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:
$69 billion (31 December 2007 est.)

Debt - external:
$2.345 trillion (30 June 2007)

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 - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)