Italian Economy
October 25th, 2009
Vladimir Gonzalez asked:
Italian Economy
Once one of the most dominant political, military and economic nations in the world, Italy, now called the ‘Sick Man of Europe’, underwent an era of rapid industrialization after the World Wars. With a population of 58 million in 2007, and a GDP of nearly $1.8 trillion, Italy occupies place ten among the largest economies in the world, in terms of purchasing power parity, and seventh place, in terms of nominal GDP.
Once World War II had come to an end, Italy was at the heart of western European institutions, like NATO, G8, the OECD, and the European Union. From an agricultural economy Italy rapidly changed to being a highly developed industrial power, and at the moment an economy ruled by service industry, making up 69 per cent of Italy’s economy, followed by industry 29 per cent and agriculture 2 per cent.
Having a small but solid medium enterprise sector, and robust family businesses, Italy has achieved less success trying to establish multinational corporations. Worldwide famous brand names from the fashion world, or automotive industries, were once family businesses. Lamborghini, Ferrari, and Alfa Romeo were all once family businesses but are now owned by Audi (in Germany) or FIAT.
Even if most of the level of technological sophistication these companies have is not very high, they are subject to increased pressures from a globalised economy, in which manufactured goods can easily be made even cheaper, anywhere else. In this background, in 2007 these growth rates were slowed to no more and mo less than to zero, with the GDP growth at 1.5 per cent, just above the previous average.
Recently, Italy has been confronted with many difficulties, such as high levels of corruption, organized crime, high levels of unemployment and external debt, illegal immigration together with the difference between the north, and the south, rich vs. poor. The repeated attempts to bring down the level of debt from 124 per cent of the GDP, as registered in 1995, were now crowned with success, and now it is still nearly 100 per cent. In the north, unemployment has declined steadily, currently averaged 6 per cent, while in the south it reaches over 20 per cent.
Italy has succeeded in time to manage the level of inflation, a major problem for Italy, but even so, it thought that prices have been doubled, once the Euro has been introduced, and thanks to the increased levels of corruption. In 2000 Italy experienced a trade deficit of over $1.3 billion, with import growth outpacing export growth.
Related links on www.economywatch.com:
General Overview of Italian Economy
Value-Added Tax (VAT) in Italy
Forbes Companies in Italy
Italian Economy
Once one of the most dominant political, military and economic nations in the world, Italy, now called the ‘Sick Man of Europe’, underwent an era of rapid industrialization after the World Wars. With a population of 58 million in 2007, and a GDP of nearly $1.8 trillion, Italy occupies place ten among the largest economies in the world, in terms of purchasing power parity, and seventh place, in terms of nominal GDP.
Once World War II had come to an end, Italy was at the heart of western European institutions, like NATO, G8, the OECD, and the European Union. From an agricultural economy Italy rapidly changed to being a highly developed industrial power, and at the moment an economy ruled by service industry, making up 69 per cent of Italy’s economy, followed by industry 29 per cent and agriculture 2 per cent.
Having a small but solid medium enterprise sector, and robust family businesses, Italy has achieved less success trying to establish multinational corporations. Worldwide famous brand names from the fashion world, or automotive industries, were once family businesses. Lamborghini, Ferrari, and Alfa Romeo were all once family businesses but are now owned by Audi (in Germany) or FIAT.
Even if most of the level of technological sophistication these companies have is not very high, they are subject to increased pressures from a globalised economy, in which manufactured goods can easily be made even cheaper, anywhere else. In this background, in 2007 these growth rates were slowed to no more and mo less than to zero, with the GDP growth at 1.5 per cent, just above the previous average.
Recently, Italy has been confronted with many difficulties, such as high levels of corruption, organized crime, high levels of unemployment and external debt, illegal immigration together with the difference between the north, and the south, rich vs. poor. The repeated attempts to bring down the level of debt from 124 per cent of the GDP, as registered in 1995, were now crowned with success, and now it is still nearly 100 per cent. In the north, unemployment has declined steadily, currently averaged 6 per cent, while in the south it reaches over 20 per cent.
Italy has succeeded in time to manage the level of inflation, a major problem for Italy, but even so, it thought that prices have been doubled, once the Euro has been introduced, and thanks to the increased levels of corruption. In 2000 Italy experienced a trade deficit of over $1.3 billion, with import growth outpacing export growth.
Related links on www.economywatch.com:
General Overview of Italian Economy
Value-Added Tax (VAT) in Italy
Forbes Companies in Italy