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 almost no growth in 2005, and unemployment remained at a high level.
GDP (purchasing power parity):
$1.651 trillion (2005 est.)
GDP (official exchange rate):
$1.694 trillion (2005 est.)
GDP - real growth rate:
0.2% (2005 est.)
GDP - per capita (PPP):
$28,400 (2005 est.)
GDP - composition by sector:
agriculture: 2.1%
industry: 28.8%
services: 69.1% (2005 est.)
Labor force:
24.49 million (2005 est.)
Labor force - by occupation:
agriculture: 5%
industry: 32%
services: 63% (2001)
Unemployment rate:
7.9% (2005 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:
36 (2000)
Inflation rate (consumer prices):
1.9% (2005 est.)
Investment (gross fixed):
19.3% of GDP (2005 est.)
Budget:
revenues: $785.7 billion
expenditures: $861.5 billion; including capital expenditures of $NA (2005 est.)
Public debt:
107.3% of GDP (2005 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% (2005 est.)
Electricity - production:
270.1 billion kWh (2003)
Electricity - consumption:
302.2 billion kWh (2003)
Electricity - exports:
500 million kWh (2003)
Electricity - imports:
51.5 billion kWh (2003)
Oil - production:
136,200 bbl/day (2003 est.)
Oil - consumption:
1.874 million bbl/day (2003 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:
13.55 billion cu m (2003 est.)
Natural gas - consumption:
76.88 billion cu m (2003 est.)
Natural gas - exports:
61 million cu m (2001 est.)
Natural gas - imports:
54.78 billion cu m (2001 est.)
Natural gas - proved reserves:
226.5 billion cu m (1 January 2002)
Current account balance:
-$27.62 billion (2005 est.)
Exports:
$371.9 billion f.o.b. (2005 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 12.4%, US 7.9%, Spain 7.3%, UK 7.1%, Switzerland 4.2% (2004)
Imports:
$369.2 billion f.o.b. (2005 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 11%, Netherlands 5.9%, Spain 4.7%, Belgium 4.5%, UK 4.3%, China 4.1% (2004)
Reserves of foreign exchange and gold:
$60 billion (2005 est.)
Debt - external:
$1.682 trillion (30 June 2005 est.)
Economic aid - donor:
ODA, $1 billion (2002 est.)
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 - 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001)
Fiscal year:
calendar year
