Italy

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The crisis has severely affected Italy. While most of the indicators (growth, exports, unemployment and public deficit) showed good results in 2007, industrial production had significant recession from 2008. The sale of luxury products dropped by almost 10% in 2009. As for the banking sector, it weathered the effects of the crisis better. However, consumption dropped and the rate of unemployment rose to around 8%. Inflation remained under control.
The government launched different social measures to try and help those who are most disadvantaged however, this had the direct consequence of dramatically increasing the public expenses of a country which shows one of the most high public debts in the world (more than 100% of the GDP).

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	1,865.11	2,117.52	2,313.89e	1,987.84e	1,987.45e
GDP (constant prices, annual % change)	2.0	1.6	-1.0e	-4.5	-0.4
GDP per capita (USD)	31,918	35,963	38,996	33,253e	33,011
General government balance (in % of GDP)	-3.3	-1.5	-2.7	-5.4e	-5.9e
Inflation rate (%)	2.2	2.0	3.5e	0.7	0.6
Unemployment rate (% of the labor force)	6.8	6.1	6.8	8.9	10.5
Current Account (billions USD)	-48.35	-51.21	-73.20e	-60.20	-61.00e
Current Account (in % of GDP)	-2.6	-2.4	-3.2e	-3.0e	-3.1e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The agricultural sector contributes about 2% of the Italian GDP. Italy is the biggest European producer of rice, fruits and vegetables, and also the world's biggest producer and exporter of wine. The country is one of the major the European Union agricultural powers. However, Italy has limited natural resources. The country has to import most of the raw materials required for production and more than 80% of its energy resources.
Italy's industrial fabric is made up mostly of small and medium family businesses. More than 90% of industrial companies have less than 100 employees. In this context, the country is suffering from a decline in world competitiveness. The manufacture of luxury goods (haute couture, cars, delicatessen foods) represents a significant part of the Italian industry. The country is the prime exporter of luxury goods. Its main industries deal with precision machinery, motor vehicles, chemical products, pharmaceutical products, electrical items, fashion and clothing.
The tertiary sector of services contributes 70% of the GDP. With Italy being the third most touristic European country, behind France and Spain, tourism plays a major role.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	4.2	30.7	65.1
Value added (in % of GDP)	2.0	27.0	70.9
Value added (annual % change)	-0.0	1.0	1.8

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Euro (EUR) - Average annual exchange rate for 1 USD	0.81	0.80	0.80	0.73	0.68

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 61.4/100
Position:: moderately free
World Rank:: 76 out of 179
Regional Rank:: 32 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Italy is amongst the top 10 trade countries in the world. Manufactured goods account for more than 90% of the country's exports. The country shows a trade deficit, mainly due to the increase in oil prices, in 2008 (the country imports 80% of its energy resources), and the appreciation of the euro. The trade balance should continue to deteriorate over the coming years.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	286,641	341,278	371,814	430,585	498,142
Exports of goods (millions USD)	298,118	352,171	372,378	418,074	502,384
Imports of services (millions USD)	74,332	83,246	90,081	100,511	121,450
Exports of services (millions USD)	71,767	84,524	89,216	98,983	111,999
Imports of goods and services (annual % change)	1.2	4.2	2.2	5.9	4.4
Exports of goods and services (annual % change)	-2.0	4.9	1.0	6.2	5.0
Imports of goods and services (in % of GDP)	24.0	24.6	26.0	28.7	29.5
Exports of goods and services (in % of GDP)	24.6	25.4	26.0	27.8	29.2
Trade Balance (millions USD)	11,477	10,893	564	-12,510	4,242
Trade Balance (including service) (millions USD)	8,912	12,172	-301	-14,038	-5,209
Foreign trade (in % of GDP)	48.6	50.0	52.0	56.5	58.7

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Germany	12.7%
France	11.1%
Spain	6.5%
United States	6.3%
United Kingdom	5.2%
Switzerland	4.0%
Russia	2.9%
Belgium	2.6%
Poland	2.6%
Austria	2.3%
Netherlands	2.3%
Greece	2.1%
Turkey	2.0%
China	1.8%
Romania	1.6%
United Arab Emirates	1.4%
Japan	1.2%
Sweden	1.1%
Czech Republic	1.1%
Slovenia	1.0%
See more countries	58.2%

Main suppliers (% of imports)	2008
Germany	15.7%
France	8.5%
China	6.3%
Netherlands	5.1%
Spain	3.9%
Libya	3.8%
Belgium	3.8%
United States	3.1%
Switzerland	3.0%
United Kingdom	2.9%
Russia	2.4%
Austria	2.2%
Poland	1.8%
Turkey	1.5%
Japan	1.3%
Romania	1.1%
Saudi Arabia	1.1%
Azerbaijan	1.1%
Czech Republic	1.1%
Sweden	1.1%
See more countries	60.6%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	21.0%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	8.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	6.2%
Articles of iron or steelArticles of iron or steel	4.7%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	4.6%
Plastics and articles thereofPlastics and articles thereof	3.8%
Iron and steelIron and steel	3.5%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	3.1%
Pharmaceutical productsPharmaceutical products	2.8%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	2.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	2.1%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.1%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.7%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.6%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.4%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.4%
Organic chemicalsOrganic chemicals	1.3%
Aluminium and articles thereofAluminium and articles thereof	1.2%
Ships, boats and floating structuresShips, boats and floating structures	1.2%
Ceramic productsCeramic products	1.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	1.1%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.0%
Rubber and articles thereofRubber and articles thereof	1.0%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.9%
Copper and articles thereofCopper and articles thereof	0.8%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.8%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.8%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.7%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.7%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.7%
Glass and glasswareGlass and glassware	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
CottonCotton	0.6%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.5%
Man-made filamentsMan-made filaments	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.4%
Meat and edible meat offalMeat and edible meat offal	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
CerealsCereals	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.2%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.1%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.1%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.1%
See more products	55.4%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	14.2%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	9.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	9.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	6.8%
Iron and steelIron and steel	5.8%
Plastics and articles thereofPlastics and articles thereof	3.6%
Pharmaceutical productsPharmaceutical products	3.1%
Organic chemicalsOrganic chemicals	3.0%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.1%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.6%
Copper and articles thereofCopper and articles thereof	1.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.4%
Articles of iron or steelArticles of iron or steel	1.4%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.2%
Aluminium and articles thereofAluminium and articles thereof	1.2%
Meat and edible meat offalMeat and edible meat offal	1.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.1%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.0%
Miscellaneous chemical productsMiscellaneous chemical products	1.0%
Rubber and articles thereofRubber and articles thereof	0.9%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.8%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.7%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.7%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.6%
Ships, boats and floating structuresShips, boats and floating structures	0.6%
CerealsCereals	0.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.6%
Ores, slag and ashOres, slag and ash	0.5%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.5%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.5%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.5%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.4%
Glass and glasswareGlass and glassware	0.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.4%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.4%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.4%
CottonCotton	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.3%
Live animalsLive animals	0.3%
Man-made filamentsMan-made filaments	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.3%
Nickel and articles thereofNickel and articles thereof	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
FertilizersFertilizers	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Ceramic productsCeramic products	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.1%
See more products	54.3%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of the Economy and Finance
Ministry of Economic Development
Ministry of Commerce
Ministry of Agricultural and Forestry Policies
Ministry of Foreign Affairs
Statistical Office: National Institute of Statistics (Istat)
Central Bank: Bank of Italy
Stock Exchange: Italian Stock Exchange
Search Engines: Yahoo! Italy
Altavista Italy
Arianna
Excite Italy
Iltravatore
Lycos Italy
Sharelook Italy
Shiny Seek
Virgilio
Economic portals

Political outline

Executive Power: The Prime Minister is the head of the government and holds the executive power, which includes the implementation of the law and the running of the everday business of the country. The Prime Minister is appointed by the President and confirmed by the Parliament, on the basis of the support of the majority. He has a five year term of office. The Council of Ministers is appointed by the Prime Minister and approved by the President.
Legislative Power: The legislative power in Italy is bicameral. The Parliament consists of two houses: the Senate (Senato della Repubblica) which has 315 members and the Chamber of deputies (Camera dei deputati) which has 630. The members of the two houses are directly elected, by universal suffrage, by a complex electoral system (amended in 2005) combining proportional representation with a majority vote. The executive branch of government depends directly or indirectly on the support of parliament, often expressed by a vote of confidence. The Prime Minister cannot dissolve Parliament. Italian citizens enjoy considerable political rights.
Main political parties: There are very many parties in Italy and none of them can claim power by itself. Because of this, parties have to come to an agreement to form coalition governments.
The country's political parties align themselves in two broad coalitions:

1) The Union : center-left including mainly political parties like the Democrat Party (Partido Democratico) led by Walter Veltroni, the Party Italia dei Valori (IdV), led by Antonio Di Pietro and the Italian Communist Party.

2) The House of Freedoms: center-right including mainly parties like the People of Freedom (Popollo Della Liberta), led by Silvio Berlusconi, the LEGA (Northern League) led by Umberto Bossi and the Movement for Autonomies (MPA), led by Raffaele Lombardo.
Current political leaders: President : Giorgio NAPOLITANO (since May 2006)
Prime Minister: Silvio Berlusconi.
Next election dates: Legislative elections: 2013
Parliamentary April 2010

Indicator of freedom of the press

World Rank:: 44/173
Evolution:: 9 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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