Italy: Economy

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.

GDP

purchasing power parity - $1.552 trillion (2003 est.)

GDP - real growth rate

0.5% (2003 est.)

GDP - per capita

purchasing power parity - $26,800 (2003 est.)

GDP - composition by sector

agriculture: 2.4%
industry: 30%
services: 67.6% (2001 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

27.3 (1995)

Inflation rate (consumer prices)

2.3% (2003 est.)

Labor force

23.6 million (2001 est.)

Labor force - by occupation

services 63%, industry 32%, agriculture 5% (2001)

Unemployment rate

9.2% (2003 est.)

Budget

revenues: $504 billion
expenditures: $517 billion, including capital expenditures of $NA (2001 est.)

Industries

tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics

Industrial production growth rate

-0.2% (2003)

Electricity - production

258.8 billion kWh (2001)

Electricity - production by source

fossil fuel: 78.6%
hydro: 18.4%
other: 3% (2001)
nuclear: 0%

Electricity - consumption

289.1 billion kWh (2001)

Electricity - exports

556 million kWh (2001)

Electricity - imports

48.93 billion kWh (2001)

Oil - production

79,460 bbl/day (2001 est.)

Oil - consumption

1.866 million bbl/day (2001 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

15.49 billion cu m (2001 est.)

Natural gas - consumption

71.18 billion cu m (2001 est.)

Natural gas - exports

61 million cu m (2001 est.)

Natural gas - imports

54.78 billion cu m (2001 est.)

Natural gas - proved reserves

209.7 billion cu m (1 January 2002)

Agriculture - products

fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish

Exports

$278.1 billion f.o.b. (2003 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 13.7%, France 12.2%, US 9.8%, UK 6.9%, Spain 6.4% (2002)

Imports

$271.1 billion f.o.b. (2003 est.)

Imports - commodities

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

Imports - partners

Germany 17.8%, France 11.3%, Netherlands 5.9%, UK 5%, US 4.9%, Spain 4.6%, Belgium 4.4% (2002)

Debt - external

NA

Economic aid - donor

ODA, $1 billion (2002 est.)

Currency

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

Currency code

EUR

Exchange rates

euros per US dollar - 0.89 (2003), 1.06 (2002), 1.12 (2001), 1.09 (2000), 0.94 (1999)

Fiscal year

calendar year