Economy of Italy

Economy of Italy
Milan is the economic capital of Italy,[1] and is a global financial centre and a fashion capital of the world.
CurrencyEuro (EUR, €) (Except in Campione d'Italia – CHF)
Calendar Year
Trade organisations
EU, WTO, G-20, G7, OECD, AIIB
Country group
Statistics
Population58,850,717 (31 December 2022)[6]
GDP
GDP rank
GDP growth
  • 3.9% (2022)
  • 0.9% (2023)
  • 0.7% (2024)[7]
GDP per capita
  • Increase $40,287 (nominal; 2024)[7]
  • Increase $60,993 (PPP; 2024)[7]
GDP per capita rank
GDP by sector
4.5% (2023)[7]
Population below poverty line
  • Steady 9.4% (2021)[9]
  • 22.8% at risk of poverty or social exclusion (AROPE 2023)[10]
31.5 medium (2023)[11]
Decrease 56 out of 100 points (2023)[13] (42nd)
Labour force
  • Decrease 44.4 million (2021)[14]
  • Increase 66.3% employment rate (2023)[15]
Labour force by occupation
Unemployment
  • Steady 6.8% (May 2024)[16]
  • Negative increase 20.5% youth unemployment (15 to 24 year-olds; May 2024)[16]
  • Positive decrease 1.753 million unemployed (May 2024)[16]
Average gross salary
€2,500 / $2,763.35 monthly[17] (2022)
€1,740 / $1,923.29 monthly[18][19] (2022)
Main industries
External
ExportsIncrease $626 billion (2023)[8]
Export goods
Engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; foodstuffs, beverages, and tobacco; minerals, nonferrous metals
Main export partners
ImportsDecrease $591 billion (2021)[8]
Import goods
Engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, tobacco
Main import partners
FDI stock
  • Increase $552.1 billion (31 December 2017 est.)[8]
  • Increase Abroad: $671.8 billion (31 December 2017 est.)[8]
Increase $59.52 billion (2019 est.)[8]
$3.024 trillion (31 December 2020)[21]
Public finances
  • Positive decrease 134.8% of GDP (2023)[22]
  • Negative increase €2.410 trillion (2019)[23]
  • €29.3 billion deficit (2019)[23]
  • −1.6% of GDP (2019)[23]
Revenues47.1% of GDP (2019)[23]
Expenses48.7% of GDP (2019)[23]
Economic aid
Increase $211.3 billion (November 2022 est.)[8]
All values, unless otherwise stated, are in US dollars.


The economy of Italy is a highly developed social market economy.[30] It is the third-largest national economy in the European Union, the second-largest manufacturing industry in Europe (7th-largest in the world),[31] the 8th-largest economy in the world by nominal GDP, and the 11th-largest by GDP (PPP). Italy is a developed country with a high nominal per capita income globally, and its advanced diversified economy ranks among the largest in the world, dominated by the tertiary service sector. It is a great power and a founding member of the European Union, the Eurozone, the Schengen Area, the OECD, the G7 and the G20;[32] it is the eighth-largest exporter in the world, with $611 billion exported in 2021. Its closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total trade. The largest trading partners, in order of market share in exports, are Germany (12.5%), France (10.3%), the United States (9%), Spain (5.2%), the United Kingdom (5.2%) and Switzerland (4.6%).[33]

In the post-World War II period, Italy saw a transformation from an agricultural-based economy which had been severely affected by the consequences of the World Wars, into one of the world's most advanced nations,[34] and a leading country in world trade and exports. According to the Human Development Index, the country enjoys a very high standard of living. According to The Economist, Italy has the world's 8th highest quality of life.[35] Italy owns the world's third-largest gold reserve,[36] and is the third-largest net contributor to the budget of the European Union. Furthermore, the advanced country private wealth is one of the largest in the world.[37] In terms of private wealth, Italy ranks second, after Hong Kong, in private wealth to GDP ratio. Among OECD members, Italy has a highly efficient and strong social security system, which comprises roughly 24.4% of GDP.[5][38][4]

Italy is the world's seventh-largest manufacturing country,[39] characterised by a smaller number of global multinational corporations than other economies of comparable size and many dynamic small and medium-sized enterprises, notoriously clustered in several industrial districts, which are the backbone of the Italian economy. Italy is a large manufacturer[40] and exporter[41] of a significant variety of products. Its products include machinery, vehicles, pharmaceuticals, furniture, food and clothing.[42] Italy has a significant trade surplus. The country is also well known for its influential and innovative business economic sector, an industrious and competitive agricultural sector (Italy is the world's largest wine producer),[43] and manufacturers of creatively designed, high-quality products: including automobiles, ships, home appliances, and designer clothing. Italy is the largest hub for luxury goods in Europe and the third-largest luxury hub globally.[44][45] Italy has a strong cooperative sector, with the largest share of the population (4.5%) employed by a cooperative in the EU.[46]

Despite these important achievements, the country's economy today suffers from few structural and non-structural problems. Annual growth rates have often been below the EU average. Italy was somewhat hit by the late-2000s recession. Massive government spending from the 1980s onwards has produced a severe rise in public debt. In addition, Italian living standards are extremely high on average, but have a considerable North–South divide: the average GDP per capita in the much richer Northern Italy significantly exceeds the EU average, while some regions and provinces in Southern Italy are significantly below the average. In Central Italy, GDP per capita is instead average.[47][48] In recent years, Italy's GDP per capita growth slowly caught-up with the Eurozone average,[49] while its employment rate also did. However, economists dispute the official figures because of the large number of informal jobs (estimated to be between 10% and 20% of the labour force) that lift the inactivity or unemployment rates.[50] The shadow economy is highly represented in Southern Italy, while it becomes less intense as one moves north. In real economic conditions, Southern Italy almost matches Central Italy's level.[51]

  1. ^ "Milan, Italy's Industrial and Financial Capital". 18 May 2018. Archived from the original on 7 July 2022. Retrieved 27 May 2022.
  2. ^ "Groups and Aggregates Information". IMF.org. International Monetary Fund.
  3. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Archived from the original on 28 October 2019. Retrieved 29 September 2019.
  4. ^ a b "Social Expenditure – Aggregated data". OECD. Archived from the original on 19 April 2021. Retrieved 23 April 2024.
  5. ^ a b Kenworthy, Lane (1999). "Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment" (PDF). Social Forces. 77 (3): 1119–1139. doi:10.2307/3005973. JSTOR 3005973. Archived (PDF) from the original on 10 August 2013.
  6. ^ "Istat: nascite 2022 ancora in calo (-1,9%)". ilsole24ore.com. Archived from the original on 22 March 2023. Retrieved 26 March 2023.
  7. ^ a b c d e f "Report for Selected Countries and Subjects: October 2024". imf.org. International Monetary Fund.
  8. ^ a b c d e f g h "CIA World Factbook". CIA.gov. Central Intelligence Agency. Archived from the original on 1 July 2021. Retrieved 13 December 2022.
  9. ^ "Poverty in Italy". ISTAT. 5 September 2022. Archived from the original on 5 September 2022. Retrieved 5 September 2022.
  10. ^ "People at risk of poverty or social exclusion by sex". ec.europa.eu. Eurostat. Retrieved 10 June 2024.
  11. ^ "Gini coefficient of equivalised disposable income - EU-SILC survey". ec.europa.eu. Eurostat. Retrieved 10 June 2024.
  12. ^ a b "Human Development Report 2023/2024" (PDF). United Nations Development Programme. 13 March 2024. Archived (PDF) from the original on 13 March 2024. Retrieved 26 April 2024.
  13. ^ "Corruption Perceptions Index". Transparency International. 30 January 2024. Archived from the original on 30 January 2024. Retrieved 15 July 2024.
  14. ^ "Population, aged 15-74 - EU labour force survey". ec.europa.eu. Eurostat. Archived from the original on 5 September 2022. Retrieved 5 September 2022.
  15. ^ "Employment rate by sex, age group 20-64". ec.europa.eu/eurostat. Eurostat. Retrieved 20 July 2024.
  16. ^ a b c "Euro area unemployment". ec.europa.eu/eurostat. Eurostat. May 2024. Retrieved 23 July 2024.
  17. ^ "Home". www.oecd-ilibrary.org. Archived from the original on 17 May 2023. Retrieved 14 May 2023.
  18. ^ "Taxing Wages 2023: Indexation of Labour Taxation and Benefits in OECD Countries | READ online". Archived from the original on 7 September 2023. Retrieved 7 September 2023.
  19. ^ "Home". Archived from the original on 7 September 2023. Retrieved 7 September 2023.
  20. ^ a b "Interscambio commerciale italiano con il resto del mondo infoMercatiEsteri - www.infomercatiesteri.it - infoMercatiEsteri - www.infomercatiesteri.it". www.infomercatiesteri.it. Archived from the original on 22 April 2022. Retrieved 25 June 2022.
  21. ^ "Euromoney Institutional Investor Company". Archived from the original on 3 May 2019. Retrieved 30 September 2017.
  22. ^ "Italy's debt-to-GDP ratio 134.8 in 2023 - Istat". ansa.it. ansa.it. 23 September 2024. Retrieved 22 October 2024.
  23. ^ a b c d e "Euro area and EU27 government deficit both at 0.6% of GDP" (PDF). ec.europa.eu/eurostat. Eurostat. Archived (PDF) from the original on 9 October 2022. Retrieved 28 April 2020.
  24. ^ "Archived copy" (PDF). Archived (PDF) from the original on 25 December 2017. Retrieved 25 December 2017.{{cite web}}: CS1 maint: archived copy as title (link)
  25. ^ "Archived copy" (PDF). Archived (PDF) from the original on 20 April 2017. Retrieved 25 December 2017.{{cite web}}: CS1 maint: archived copy as title (link)
  26. ^ "Sovereigns Rating List". Standard & Poor's. Archived from the original on 28 September 2011. Retrieved 26 May 2011.
  27. ^ Bufacchi, Isabella (16 October 2014). "Moody's confirms stable outlook on Italy's "Baa2" sovereign rating". Il Sole 24 Ore. Archived from the original on 6 February 2015. Retrieved 8 February 2015.
  28. ^ "Italy". fitchratings.com. fitchratings.com. Retrieved 25 October 2024.
  29. ^ "Scope affirms Italy's BBB+/Stable long-term credit ratings". Scope Ratings. Retrieved 13 July 2024.
  30. ^ Hall, Peter A.; Soskice, David (2001). Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford University Press. p. 131. ISBN 978-0-191-64770-3. Archived from the original on 23 July 2023. Retrieved 18 March 2022.
  31. ^ "Manufacturing by Country 2024". Archived from the original on 30 November 2023. Retrieved 14 October 2023.
  32. ^ "Report for Selected Countries and Subjects". www.imf.org. Archived from the original on 25 April 2018. Retrieved 13 March 2019.
  33. ^ "CIA World Factbook: Italy". CIA. Archived from the original on 1 July 2021. Retrieved 8 February 2015.
  34. ^ "Select Country or Country Groups". www.imf.org. Archived from the original on 22 October 2017. Retrieved 26 November 2017.
  35. ^ "The Economist Intelligence Unit's quality-of-life index" (PDF). The Economist. Archived (PDF) from the original on 2 August 2012. Retrieved 8 February 2015.
  36. ^ Stringa, Giovanni (5 January 2013). "Italia terza al mondo per riserve d'oro, per ogni cittadino dote di 1.650 euro". Corriere della Sera. Archived from the original on 20 September 2015. Retrieved 6 February 2015.
  37. ^ "Quel bilancio Ue poco equilibrato". Il Sole 24 Ore. 1 February 2013. Archived from the original on 19 July 2018. Retrieved 8 February 2015.
  38. ^ Moller, Stephanie; Huber, Evelyne; Stephens, John D.; Bradley, David; Nielsen, François (2003). "Determinants of Relative Poverty in Advanced Capitalist Democracies". American Sociological Review. 68 (1): 22–51. doi:10.2307/3088901. JSTOR 3088901.
  39. ^ "Manufacturing, value added (current US$) Archived 10 October 2017 at the Wayback Machine". accessed on 17 May 2017.
  40. ^ "Manufacturing statistics". Eurostat. November 2015. Archived from the original on 3 June 2019. Retrieved 8 February 2015.
  41. ^ Workman, Daniel (27 December 2018). "Italy's Top 10 Exports". World's Top Exports. Archived from the original on 21 April 2019. Retrieved 2 December 2018.
  42. ^ Workman, Daniel (2 March 2019). "Top Industrial Robots Exporters". World's Top Exports. Archived from the original on 4 May 2019. Retrieved 2 December 2018.
  43. ^ Woodard, Richard (19 March 2013). "Italian wine now 22% of global market". Decanter. Archived from the original on 27 January 2015. Retrieved 8 February 2015.
  44. ^ Gustafson, Krystina (31 December 2015). "The world's biggest luxury markets in 2015". CNBC. Archived from the original on 9 November 2019. Retrieved 9 September 2017.
  45. ^ "Italy remains the third market for luxury goods". Archived from the original on 10 March 2020. Retrieved 26 March 2016.
  46. ^ "The Power of Cooperation – Cooperatives Europe key statistics 2015" (PDF). Cooperatives Europe. April 2016. Archived (PDF) from the original on 12 November 2020. Retrieved 28 May 2021.
  47. ^ "REGIONAL ACCOUNTS YEARS 2017-2019" (PDF). ISTAT. 22 December 2020. Archived (PDF) from the original on 8 February 2023.
  48. ^ "Anno 2017 CONTI ECONOMICI TERRITORIALI" (PDF) (in Italian). ISTAT. 13 December 2018. Archived (PDF) from the original on 15 May 2022. Retrieved 18 January 2021.
  49. ^ "GDP per capita growth (annual %) | Data". data.worldbank.org. Archived from the original on 10 August 2019. Retrieved 13 March 2019.
  50. ^ "In Italia 3,7 milioni di lavoratori in nero". LaStampa.it. 14 October 2016. Archived from the original on 1 November 2018. Retrieved 7 July 2017.
  51. ^ "Il Sud d'Italia e i settori che evadono di più". Il Sole 24 Ore (in Italian). 29 August 2019. Archived from the original on 29 March 2023. Retrieved 22 January 2021.