Economic overview Italy, in 36 editions.

Since World War II the economy has changed from one based on agriculture into a ranking industrial economy, with approximately the same total and per capita output as France and the UK. The country is still divided into a developed industrial north, dominated by large small private companies and state enterprises companies, and an undeveloped agricultural south. south, dominated by large public enterprises. Services account for 58% 48% of GDP, industry 37%, and 34%, agriculture 5%. 4%, and public administration 13%. Most raw materials needed by industry and over 75% of energy requirements must be imported. The economic recovery that began in mid-1983 has continued through 1989, 1990, with the economy growing at an annual average rate of 3%. For the 1990s, Italy faces the problems of refurbishing a tottering communications system, curbing the increasing pollution in major industrial centers, and adjusting to the new competitive forces accompanying the ongoing economic integration of the European Community.

Since World War II the economy has changed from one based on agriculture
into a ranking industrial economy, with approximately the same total and per
capita output as France and the UK. The country is still divided into a
developed industrial north, dominated by small private companies, and an
undeveloped agricultural south, dominated by large public enterprises.
Services account for 48% of GDP, industry 34%, about 35%, agriculture 4%, and
public administration 13%. Most raw materials needed by industry and over
75% of energy requirements must be imported. The economic recovery that began in mid-1983 has continued through 1990, with the economy After growing at an annual
average rate of 3%. 3% during the period 1983-90, growth slowed to about 1% in
1991. For the 1990s, Italy faces the problems of refurbishing a tottering
communications system, curbing pollution in major industrial centers, and
adjusting to the new competitive forces accompanying the ongoing economic
integration of the European Community.

Since World War II the economy has changed from one based on agriculture
into a ranking industrial economy, with approximately the same total and per
capita output as France and the UK. The country is still divided into a
developed industrial north, dominated by small private companies, and an
undeveloped agricultural south, dominated by large public enterprises.
Services account for 48% of GDP, industry about 35%, agriculture 4%, and
public
administration 13%. Most raw materials needed by industry and over
75% of
energy requirements must be imported. After growing at an annual
average
rate of 3% during the period in 1983-90, growth slowed to about 1% in 1991 and 1992. In the
1991. second half of 1992, Rome became unsettled by the prospect of not qualifying
to participate in EC plans for economic and monetary union later in the
decade; thus it finally began to address its huge fiscal imbalances. Thanks
to the determination of Prime Minister AMATO, the government adopted a
fairly stringent budget for 1993, abandoned its highly inflationary wage
indexation system, and started to scale back its extremely generous social
welfare programs, including pension and health care benefits. Monetary
officials, who were forced to withdraw the lira from the European monetary
system in September 1992 when it came under extreme pressure in currency
markets, remain committed to bringing the currency back into the grid as
soon as conditions warrant. For the 1990s, Italy faces the problems of
refurbishing a tottering
communications system, curbing pollution in major
industrial centers, and
adjusting to the new competitive forces accompanying
the ongoing economic
integration of the European Community.

Since World War II the Italian economy has changed from one based on agriculture
agriculture into a ranking industrial economy, with approximately the
same total and per
capita output as France and the UK. The country is
still divided into a
developed industrial north, dominated by private
companies, and an
undeveloped agricultural south, dominated by large
public enterprises.
Services account for 48% of GDP, industry 35%,
agriculture 4%, and public
administration 13%. Most raw materials
needed by industry and over 75% of
energy requirements must be
imported. After growing at an annual average
rate of 3% in 1983-90,
growth slowed to about 1% in 1991 and 1992. 1992 and fell by 0.7% in 1993.
In the
second half of 1992, Rome became unsettled by the prospect of
not qualifying
to participate in EC plans for economic and monetary
union later in the
decade; thus it finally began to address its huge
fiscal imbalances. Thanks
to the determination of Prime Minister AMATO, Ministers
AMATO and CIAMPI, the government adopted a
fairly stringent budget for 1993,
1993 and 1994, abandoned its highly inflationary wage
indexation
system, and started to scale back its extremely generous social
welfare programs, including pension and health care benefits. Monetary
officials, who officials were forced to withdraw the lira from the European monetary
system in September 1992 when it came under extreme pressure in currency
markets, remain committed to bringing the currency back into the grid as
soon as conditions warrant. markets. For the 1990s, Italy faces the problems of
refurbishing a tottering communications system, curbing pollution in major
major industrial centers, and adjusting to the new competitive forces accompanying
accompanying the ongoing economic integration of the European Community. Union.

Since World War II the Italian economy has changed from one
based on
agriculture into a ranking industrial economy, with
approximately the
same total and per capita output as France and the
UK. The country is
still divided into a developed industrial north,
dominated by private
companies, and an undeveloped agricultural south,
dominated by large
public enterprises. Services account for 48% of
GDP, industry 35%,
agriculture 4%, and public administration 13%. Most
raw materials
needed by industry and over 75% of energy requirements
must be
imported. After growing at an annual average annual rate of 3% in 1983-90,
1983-90, growth slowed to about 1% in 1991 and 1992 and 1992, fell by 0.7% in 1993.
1993, and recovered to 2% in 1994. In the second half of 1992, Rome
became unsettled by the prospect of
not qualifying to participate in EC
EU plans for economic and monetary
union later in the decade; thus it
finally began to address its huge
fiscal imbalances. Thanks to Subsequently, the determination of Prime Ministers
AMATO and CIAMPI, the government has adopted a fairly stringent budget for
1993 and 1994, budgets, abandoned its highly
inflationary wage indexation
system, and started to scale back its
extremely generous social
welfare programs, including pension and
health care benefits. Monetary
officials were forced to withdraw the
lira from the European monetary
system in September 1992 when it came
under extreme pressure in
currency markets. For the 1990s, Italy faces
the problems of
pushing ahead with fiscal reform, refurbishing a
tottering communications system, curbing pollution in
major industrial
centers, and adjusting to the new competitive forces
accompanying the
ongoing expansion and economic integration of the European Union.

Since World War II II, the Italian economy has
changed from one
based on agriculture into a ranking industrial
economy, with
approximately the same total and per capita output as
France and the
UK. The country is still divided into a developed
industrial north,
dominated by private companies, and an undeveloped
agricultural south,
dominated by large public enterprises. Services account for 48% of
GDP, industry 35%, agriculture 4%, and public administration 13%. Most
raw
materials needed by industry and over 75% of energy requirements
must be imported. After growing at an average annual rate of 3% in
1983-90, growth slowed to about 1% in 1991 and 1992, fell by 0.7% in
1993, and recovered to 2% in 1994. In the second half of 1992, Rome
became unsettled
by the prospect of not qualifying to participate in
EU plans for
economic and monetary union later in the decade; thus thus, it
finally
began to address its huge fiscal imbalances. Subsequently, the
government has adopted fairly stringent budgets, abandoned its highly
inflationary wage indexation system, and started to scale back its
extremely generous social welfare programs, including pension and
health care
benefits. Monetary officials were forced to withdraw the
lira from
the European monetary system in September 1992 1992, when it came
under
extreme pressure in currency markets. For the 1990s, Italy faces
the
problems of pushing ahead with fiscal reform, refurbishing a
tottering communications system, curbing pollution in major industrial
industrial centers, and adjusting to the new competitive forces
accompanying the
ongoing expansion and economic integration of the European Union.
EU.

Since World War II, the Italian economy has
changed from one based on agriculture into a ranking industrial
economy, with approximately the same total and per capita output as
France and the UK. The country This basically capitalistic economy is still
divided into a developed
industrial north, dominated by private
companies, and an undeveloped
a less developed agricultural south, dominated by with large public
enterprises. Most raw
materials needed by industry and over 75% of
energy requirements
must be imported. In the second half of 1992, Rome
became unsettled
by the prospect of not qualifying to participate in
EU plans for
economic and monetary union later in the decade; thus, it finally
finally began to address its huge fiscal imbalances. Subsequently, the
government has adopted fairly stringent budgets, abandoned its
inflationary wage indexation system, and started to scale back its
generous social welfare programs, including pension and health care
benefits. Monetary officials were forced to withdraw In November 1996 the lira from
lire rejoined the European monetary system
system, which it had left in September 1992, 1992 when it came under
extreme
pressure in currency markets. For the 1990s, Italy in early 1997 faces the problem of
restructuring its economy to meet Maastricht criteria for inclusion in
the EMU, together with other problems of pushing ahead with fiscal reform, refurbishing a
tottering
communications system, curbing pollution in major
industrial centers, pollution, and adjusting to the new competitive forces
accompanying the ongoing expansion new EU and economic integration of the
EU. global competitive forces.

Since World War II, the Italian economy has
changed
from one based on agriculture into a ranking industrial
economy, with
approximately the same total and per capita output as
France and the
UK. This basically capitalistic economy is still
divided into a
developed industrial north, dominated by private
companies, and a less
developed agricultural south, with large public enterprises and more
enterprises. than 20% unemployment. Most raw materials needed by industry and over
75% of
energy requirements must be imported. In the second half of
1992, Rome
became unsettled by the prospect of not qualifying to
participate in
EU plans for economic and monetary union later in the
decade; thus, it
finally began to address its huge fiscal imbalances.
Subsequently, the
government has adopted fairly stringent budgets,
abandoned its
inflationary wage indexation system, and started to
scale back its
generous social welfare programs, including pension and
health care
benefits. In November 1996 the lire rejoined the European monetary
monetary system, which it had left in September 1992 when under extreme
extreme pressure in currency markets. Italy in early 1997 faces the problem of
restructuring its economy to meet Maastricht criteria for inclusion in
the EMU, together with other problems of refurbishing a tottering
communications system, curbing industrial pollution, and adjusting to
new EU and global competitive forces.

Since World War II, the Italian economy has changed
changed from one based on agriculture into a ranking industrial
economy, with
approximately the same total and per capita output as
France and the
UK. This basically capitalistic economy is still
divided into a
developed industrial north, dominated by private
companies, and a less
developed agricultural south, with large
public enterprises and more
than 20% unemployment. Most raw
materials needed by industry and over
75% of energy requirements
must be imported. In the second half of
1992, Rome became unsettled
by the prospect of not qualifying to
participate in EU plans for
economic and monetary union later in the
decade; thus, it finally
began to address its huge fiscal imbalances.
Subsequently, the
government has adopted fairly stringent budgets,
abandoned its
inflationary wage indexation system, and started to
scale back its
generous social welfare programs, including pension and
health care
benefits. In November 1996 December 1998, Italy adopted a budget compliant with
the lire rejoined requirements of the European Monetary Union (EMU);
monetary system, representatives of government, labor, and employers agreed to an
update of the 1993 "social pact," which it had left in September 1992 when under has been widely credited
extreme pressure in currency markets. with having brought Italy's inflation into conformity with EMU
requirements. In 1999, Italy faces must adjust to the problem loss of an
restructuring its economy to meet Maastricht criteria for inclusion independent monetary policy, which it has used quite liberally in
the EMU, together past to help cope with other problems of refurbishing a tottering
communications system, curbing industrial pollution, and adjusting external shocks. Italy also must work to
new EU stimulate employment, promote wage flexibility, and global competitive forces. tackle the
informal economy.

Since World War II, the Italian economy Italy has
changed from one based on agriculture into a ranking diversified industrial
economy, economy with approximately the same total and per capita output as
France and the UK. This basically capitalistic economy is still
remains divided into a developed industrial north, dominated by private
companies, and a less developed agricultural south, with large
public enterprises and more than 20% unemployment. Most raw
materials needed by industry and over more than 75% of energy requirements
must be are imported. In the second half of 1992, Rome became unsettled
by the prospect of not qualifying to participate in EU plans for
economic and monetary union later in the decade; thus, it finally
began to address its huge fiscal imbalances. Subsequently, the
government has adopted fairly stringent budgets, abandoned its
inflationary wage indexation system, and started to scale back its
generous social welfare programs, including pension and health care
benefits. In December 1998, For several years Italy has adopted a budget budgets compliant with
the requirements of the European Monetary Union (EMU);
representatives of government, labor, and employers also agreed to an
update of the 1993 "social pact," which has been widely credited
with having brought Italy's inflation into conformity with EMU
requirements. In 1999, Italy must adjust to the loss of an
independent monetary policy, which it has used quite liberally in
the past to help cope with external shocks. Italy also must work to
stimulate employment, promote wage flexibility, hold down the growth in pensions, and tackle the
informal economy. Growth was 1.3% in 1999 and should edge up to 2.6% in 2000, led by investment and exports.

Italy has a diversified industrial economy with approximately 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 agricultural south, with more than 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. For several years Since 1992, Italy has adopted budgets compliant with the requirements of the European Monetary Union (EMU); wage moderation agreements by representatives of government, labor, and employers also agreed have helped to an update of the 1993 "social pact," which has been widely credited with having brought bring Italy's inflation into conformity with EMU requirements. Italy Italy's economic performance, however, has lagged behind that of its EU partners and it must work to stimulate employment, promote wage labor flexibility, hold down the growth in pensions, reform its expensive pension system, and tackle the informal economy. Growth was 1.3% in 1999 and should edge up to 2.6% in 2000, led by investment and exports.

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 agricultural south, with more than 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Since 1992, Over the past decade, Italy has adopted budgets compliant with pursued a tight fiscal policy in order to meet the requirements of the European Economic and Monetary Union (EMU); wage moderation agreements by representatives of government, labor, Unions and employers have helped to bring Italy's has benefited from lower interest and inflation into conformity with EMU requirements. Italy's economic performance, however, rates. The current government has lagged behind that of its EU partners enacted numerous short-term reforms aimed at improving competitiveness and it must work to stimulate employment, promote long-term growth. Rome has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor flexibility, reform its expensive market and over-generous pension system, and tackle because of the informal economy. current economic slowdown and opposition from labor unions.

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 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. Rome 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.

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 has breached the 3% EU deficit ceiling.

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 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 deficit ceiling. The economy experienced almost no growth in 2005, and unemployment remained at a high level.

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 low growth in 2005, 2006, and unemployment remained at a high level.

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 budget deficit government has breached found it difficult to bring the 3% EU ceiling. budget deficit down to a level that would allow a rapid decrease in that debt. The economy experienced low continues to grow by less than the euro-zone average and growth is expected to decelerate from 1.9% in 2006, 2006 and unemployment remained at a high level. 2007 to under 1.5% in 2008 as the euro-zone and world economies slow.

Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with 20% high unemployment. Most raw materials needed The Italian economy is driven in large part by industry and more than 75% of energy requirements are imported. Over the past decade, manufacture of high-quality consumer goods produced by small and medium-sized enterprises. Italy also has pursued a tight fiscal policy in order to meet the requirements sizable underground economy, which by some estimates accounts for as much as 15% of GDP. These activities are most common within 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 agriculture, construction, and long-term growth. service sectors. Italy has moved slowly, however, slowly 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 system and opposition from labor unions. But these conditions will be exacerbated by the recent global financial crisis. The Italian government is seeking to rein in government spending, 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 fiscal deficit down to a level that would allow a rapid decrease - 1.5% of GDP in that debt. The economy continues 2007 - could approach 3% in 2009 as political pressure to grow by less than stimulate the euro-zone average and growth is expected to decelerate from 1.9% in 2006 economy and 2007 the costs of servicing Italy's debt rise. The economy will continue to under 1.5% in 2008 contract through 2009 as the euro-zone and world economies slow. global demand for exports drop.

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises. enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy has moved slowly on implementing needed structural reforms, such as lightening the high tax burden and reducing graft, overhauling costly entitlement programs, and increasing employment opportunities for young workers, particularly women. The international financial crisis worsened conditions in Italy's rigid labor market and over-generous pension system market, with unemployment rising from 6.2% in 2007 to 8.4% in 2010, but in the longer-term Italy's low fertility rate and these conditions quota-driven immigration policies will be exacerbated increasingly strain its economy. A rise in exports and investment driven by the recent global financial crisis. economic recovery nevertheless helped the economy grow by about 1% in 2010 following a 5% contraction in 2009. The Italian government is seeking has struggled to rein in limit government spending, but the leadership faces a severe economic constraint: Italy's official exceedingly high public debt remains above 100% 115% of GDP, and the its fiscal deficit - just 1.5% of GDP in 2007 - could approach 3% exceeded 5% in 2009 as political pressure to stimulate the economy and 2010, as the costs of servicing Italy's debt rise. The economy will continue to contract through 2009 as the global demand for exports drop. country's debt rose.

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy has moved slowly on implementing needed structural reforms, such as reducing graft, overhauling costly entitlement programs, and increasing employment opportunities for young workers, particularly women. The international financial crisis worsened conditions in Italy's labor market, with unemployment rising from 6.2% in 2007 to 8.4% in 2010, but in the longer-term Italy's low fertility rate and quota-driven immigration policies will increasingly strain its economy. A rise in exports and investment driven by the global economic recovery nevertheless helped the economy grow by about 1% in 2010 following a 5% contraction in 2009. The Italian government has struggled to limit government spending, but Italy's exceedingly high public debt remains above 115% of GDP, and its fiscal deficit - just 1.5% of GDP in 2007 - exceeded 5% in 2009 and 4% in 2010, as the costs of servicing the country's debt rose.

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, highly subsidized, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has moved slowly increased steadily since 2007, topping 126% of GDP in 2012, and investor concerns about the broader euro-zone crisis at times have caused borrowing costs on implementing needed structural sovereign government debt to rise to euro-era records. During the second half of 2011 the government passed a series of three austerity packages to balance its budget and decrease its public debt. These measures included a hike in the value-added tax, pension reforms, such as reducing graft, overhauling costly entitlement programs, and increasing employment opportunities for young workers, particularly women. cuts to public administration. The international financial crisis worsened conditions in government also faces pressure from investors and European partners to sustain its recent efforts to address Italy's long-standing structural impediments to growth, such as an inflexible labor market, market and widespread tax evasion. In 2012 economic growth and labor market conditions deteriorated, with growth at -2.3% and unemployment rising from 6.2% in 2007 to 8.4% in 2010, but nearly 11%. Although the government has undertaken several economic reform iniatiatives, in the longer-term Italy's low fertility rate rate, productivity, and quota-driven immigration policies foreign investment will increasingly strain its economy. A rise in exports and investment driven by the global economic recovery nevertheless helped the economy grow by about 1% in 2010 following a 5% contraction in 2009. The Italian government has struggled to limit government spending, but Italy's exceedingly high public debt remains above 115% of GDP, and its fiscal deficit - just 1.5% of GDP in is now 7% below its 2007 - exceeded 5% in 2009 and 4% in 2010, as the costs of servicing the country's debt rose. pre-crisis level.

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, with high unemployment. where unemployment is high. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 126% of GDP in 2012, and investor concerns about the broader euro-zone crisis at times have caused borrowing costs on sovereign government debt to rise to euro-era records. During the second half of 2011 the government passed a series of three austerity packages to balance reduce its budget deficit and decrease its public debt. help bring down borrowing costs. These measures included a hike in the value-added tax, pension reforms, and cuts to public administration. The government also faces pressure from investors and European partners to sustain its recent efforts to address Italy's long-standing structural impediments to growth, such as an inflexible labor market inefficiencies and widespread tax evasion. In 2012 economic growth and labor market conditions deteriorated, with growth at -2.3% and unemployment rising to nearly 11%. Although the 11%, with youth unemployment around 35%. The government has undertaken several economic reform iniatiatives, in the longer-term Italy's low fertility rate, productivity, and foreign investment will increasingly strain its economy. initiatives designed to increase long-term economic growth. Italy's GDP is now 7% below its 2007 pre-crisis level.

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, where unemployment is high. higher. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 126% 133% of GDP in 2012, and 2013, but investor concerns about Italy and the broader euro-zone crisis at times have caused eased in 2013, bringing down Italy's borrowing costs on sovereign government debt to rise to from euro-era records. During the second half of 2011 the government passed three austerity packages to reduce its budget deficit and help bring down borrowing costs. These measures included a hike in the value-added tax, pension reforms, and cuts to public administration. The government also still faces pressure from investors and European partners to sustain its recent efforts to address Italy's long-standing structural impediments to growth, such as labor market inefficiencies and widespread tax evasion. In 2012 2013 economic growth and labor market conditions deteriorated, with growth at -2.3% -1.8% and unemployment rising to nearly 11%, 12.4%, with youth unemployment around 35%. The government has undertaken several reform initiatives designed to increase long-term economic growth. 40%. Italy's GDP is now 7% 8% below its 2007 pre-crisis level.

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, where unemployment is higher. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 133% 132% of GDP in 2013, 2014, but investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euro-era records. The government still faces pressure from investors and European partners to sustain its efforts to address Italy's long-standing structural impediments to growth, such as labor market inefficiencies and widespread tax evasion. In 2013 2014 economic growth and labor market conditions deteriorated, continued to deteriorate, with growth at -1.8% and overall unemployment rising to 12.4%, with 12.2% and youth unemployment around 40%. Italy's GDP is now 8% nearly 10% below its 2007 pre-crisis level.

Italy has a diversified economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, where unemployment is higher. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors.
Italy is the third-largest economy in the euro-zone, euro zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 132% 135% of GDP in 2014, 2015, but investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euro-era records. The government still faces pressure from investors and European partners to sustain its efforts to address Italy's long-standing longstanding structural impediments to growth, such as labor market inefficiencies and tax evasion. In 2014 2014, economic growth and labor market conditions continued to deteriorate, with overall unemployment rising to 12.2% 12.7% and youth unemployment around 40%. Italy's GDP is now nearly 10% below its 2007 pre-crisis level. 40%, but Italy began to recover in 2015, with marginal growth and a slight reduction in unemployment.

Italy has a diversified economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, where unemployment is higher. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors.
Italy is the third-largest economy in the euro zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 135% reaching 133% of GDP in 2015, but investor 2016. Investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euro-era records. The government still faces pressure from investors and European partners to sustain its efforts to address Italy's longstanding structural impediments to growth, such as labor market inefficiencies and tax evasion. In 2014, economic growth inefficiencies, a sluggish judicial system, and labor market conditions continued a weak banking sector. Italy’s economy returned to deteriorate, with modest growth in late 2014 for the first time since late 2011. In 2015-16, Italy’s economy grew 0.7% each year. In 2016, overall unemployment rising to 12.7% and was 11.7%, but youth unemployment around 40%, but Italy began to recover in 2015, with marginal growth and a slight reduction in unemployment. remains high at 37.1%.

Italy has a diversified economy, which is divided into Italy’s economy comprises a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, where with a legacy of unemployment is higher. and underdevelopment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors.
Italy is the third-largest economy in the euro zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, reaching 133% 131% of GDP in 2016. 2017. Investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euro-era records. The government still faces pressure from investors and European partners to sustain its efforts to address Italy's longstanding structural impediments to growth, such as economic problems, including labor market inefficiencies, a sluggish judicial system, and a weak banking sector. Italy’s economy returned to modest growth in late 2014 for the first time since late 2011. In 2015-16, Italy’s economy grew 0.7% at about 1% each year. year, and in 2017 growth accelerated to 1.5% of GDP. In 2016, 2017, overall unemployment was 11.7%, 11.4%, but youth unemployment remains remained high at 37.1%. GDP growth is projected to slow slightly in 2018.

Italy’s economy comprises a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, with a legacy of unemployment and underdevelopment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors.
Italy is the third-largest economy in the euro zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, reaching 131% of GDP in 2017. Investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euro-era records. The government still faces pressure from investors and European partners to sustain its efforts to address Italy's longstanding structural economic problems, including labor market inefficiencies, a sluggish judicial system, and a weak banking sector. Italy’s economy returned to modest growth in late 2014 for the first time since 2011. In 2015-16, Italy’s economy grew at about 1% each year, and in 2017 growth accelerated to 1.5% of GDP. In 2017, overall unemployment was 11.4%, but youth unemployment remained high at 37.1%. GDP growth is projected to slow slightly in 2018.

high-income, core EU economy; strong services, manufacturing, and tourism sectors; sustained recovery modest growth supported by net exports, low inflation, and public investments via EU funds; tight labor market with aging workforce and shortages in post-COVID inflationary environment; specialized skills; high public debt levels; increasing poverty levels particularly in poorer south; strong exports to EU and US partners