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Italy Economy Profile 2018

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Economy - overviewItaly 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, 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 impediments to growth, such as 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 more than 0.8% each year, but picked up in 2017. In 2017, overall unemployment was 11.4%, but youth unemployment remained high at 37.1%.
GDP (purchasing power parity)$2.307 trillion (2017 est.)
$2.273 trillion (2016 est.)
$2.253 trillion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$1.921 trillion (2016 est.)
GDP - real growth rate1.5% (2017 est.)
0.9% (2016 est.)
0.8% (2015 est.)
GDP - per capita (PPP)$38,000 (2017 est.)
$37,500 (2016 est.)
$37,100 (2015 est.)
note: data are in 2017 dollars
Gross national saving19.6% of GDP (2017 est.)
19.6% of GDP (2016 est.)
18.8% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 60.2%
government consumption: 18.7%
investment in fixed capital: 17.2%
investment in inventories: 0.1%
exports of goods and services: 31.8%
imports of goods and services: -28% (2017 est.)
GDP - composition by sectoragriculture: 2.1%
industry: 24%
services: 73.9% (2017 est.)
Population below poverty line29.9% (2012 est.)
Labor force25.94 million (2017 est.)
Labor force - by occupationagriculture: 3.9%
industry: 28.3%
services: 67.8% (2011)
Unemployment rate11.4% (2017 est.)
11.7% (2016 est.)
Unemployment, youth ages 15-24total: 40.3%
male: 38.8%
female: 42.6% (2015 est.)
Household income or consumption by percentage sharelowest 10%: 2.3%
highest 10%: 26.8% (2000)
Distribution of family income - Gini index31.9 (2012 est.)
27.3 (1995)
Budgetrevenues: $884.4 billion
expenditures: $927.7 billion (2017 est.)
Taxes and other revenues46% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-2.3% of GDP (2017 est.)
Public debt131.2% of GDP (2017 est.)
132.5% of GDP (2016 est.)
note: Italy reports its data on public debt according to guidelines set out in the Maastricht Treaty; general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year, in the following categories of government liabilities (as defined in ESA95): currency and deposits (AF.2), securities other than shares excluding financial derivatives (AF.3, excluding AF.34), and loans (AF.4); the general government sector comprises the central government, state government, local government and social security funds
Inflation rate (consumer prices)1.4% (2017 est.)
-0.1% (2016 est.)
Central bank discount rate0.25% (31 December 2013)
0.75% (31 December 2012)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
Commercial bank prime lending rate3.3% (31 December 2017 est.)
3.5% (31 December 2016 est.)
Stock of narrow money$1.238 trillion (31 December 2017 est.)
$1.101 trillion (31 December 2016 est.)
note: see entry for the European Union for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
Stock of broad money$1.694 trillion (31 December 2017 est.)
$1.519 trillion (31 December 2016 est.)
Stock of domestic credit$3.264 trillion (31 December 2017 est.)
$3.024 trillion (31 December 2016 est.)
Market value of publicly traded shares$587.3 billion (31 December 2014 est.)
$615.5 billion (31 December 2013 est.)
$480.5 billion (31 December 2012 est.)
Agriculture - productsfruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish
Industriestourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics
Industrial production growth rate0.8% (2017 est.)
Current Account Balance$52.83 billion (2017 est.)
$47.31 billion (2016 est.)
Exports$499.1 billion (2017 est.)
$454.1 billion (2016 est.)
Exports - commoditiesengineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; foodstuffs, beverages, and tobacco; minerals, nonferrous metals
Exports - partnersGermany 12.6%, France 10.5%, US 8.9%, UK 5.4%, Spain 5%, Switzerland 4.6% (2016)
Imports$426.7 billion (2017 est.)
$387.1 billion (2016 est.)
Imports - commoditiesengineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, tobacco
Imports - partnersGermany 16.3%, France 8.9%, China 7.5%, Netherlands 5.5%, Spain 5.3%, Belgium 4.9% (2016)
Reserves of foreign exchange and gold$136 billion (31 December 2016 est.)
$130.6 billion (31 December 2015 est.)
Debt - external$2.444 trillion (31 March 2016 est.)
$2.3 trillion (31 March 2015 est.)
Stock of direct foreign investment - at home$495.2 billion (31 December 2017 est.)
$471.7 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$607.8 billion (31 December 2017 est.)
$584.1 billion (31 December 2016 est.)
Exchange rateseuros (EUR) per US dollar -
0.906 (2017 est.)
0.9214 (2016 est.)
0.9214 (2015 est.)
0.885 (2014 est.)
0.7634 (2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

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