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Italy Economy 2008

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. 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 deficit down to a level that would allow a rapid decrease in that debt. The economy continues to grow by less than the euro-zone average and growth is expected to decelerate from 1.9% in 2006 and 2007 to under 1.5% in 2008 as the euro-zone and world economies slow.
GDP (purchasing power parity): $1.8 trillion (2007 est.)
GDP (official exchange rate): $2.105 trillion (2007 est.)
GDP - real growth rate: 1.4% (2007 est.)
GDP - per capita (PPP): $30,900 (2007 est.)
GDP - composition by sector: agriculture: 2% industry: 27% services: 70.9% (2007 est.)
Labor force: 24.74 million (2007 est.)
Labor force - by occupation: agriculture: 5% industry: 32% services: 63% (2001)
Unemployment rate: 6.2% (2007 est.)
Household income or consumption by percentage share: lowest 10%: 2.3% highest 10%: 26.8% (2000)
Distribution of family income - Gini index: 33 (2005)
Investment (gross fixed): 21% of GDP (2007 est.)
Budget: revenues: $991.2 billion expenditures: $1.031 trillion (2007 est.)
Public debt: 104% of GDP (2007 est.)
Inflation rate (consumer prices): 1.8% (2007 est.)
Central bank discount rate: NA
Commercial bank prime lending rate: 10.93% (31 December 2007)
Stock of money: NA note: see entry for the European Union for money supply in the Euro Area; the European Central Bank (ECB) controls monetary policy for the 15 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
Stock of quasi money: NA (31 December 2007)
Stock of domestic credit: $3.084 trillion (31 December 2007)
Agriculture - products: fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish
Industries: tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics
Industrial production growth rate: 0.6% (2007 est.)
Electricity - production: 292.1 billion kWh (2007 est.)
Electricity - consumption: 316.3 billion kWh (2006 est.)
Electricity - exports: 2.64 billion kWh (2007 est.)
Electricity - imports: 48.57 billion kWh (2007 est.)
Oil - production: 166,600 bbl/day (2007 est.)
Oil - consumption: 1.702 million bbl/day (2007 est.)
Oil - exports: 616,700 bbl/day (2005)
Oil - imports: 2.223 million bbl/day (2005)
Oil - proved reserves: 406.5 million bbl (1 January 2008 est.)
Natural gas - production: 9.706 billion cu m (2007 est.)
Natural gas - consumption: 84.89 billion cu m (2007 est.)
Natural gas - exports: 68 million cu m (2007 est.)
Natural gas - imports: 73.95 billion cu m (2007 est.)
Natural gas - proved reserves: 94.15 billion cu m (1 January 2008 est.)
Current account balance: -$51.03 billion (2007 est.)
Exports: $502.4 billion f.o.b. (2007 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 12.9%, France 11.4%, Spain 7.4%, US 6.8%, UK 5.8% (2007)
Imports: $498.1 billion f.o.b. (2007 est.)
Imports - commodities: engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco
Imports - partners: Germany 16.9%, France 9%, China 5.9%, Netherlands 5.5%, Belgium 4.3%, Spain 4.2% (2007)
Reserves of foreign exchange and gold: $94.33 billion (31 December 2007 est.)
Debt - external: $996.3 billion (31 December 2007)
Stock of direct foreign investment - at home: $364.8 billion (2007 est.)
Stock of direct foreign investment - abroad: $520.1 billion (2007 est.)
Market value of publicly traded shares: $798.2 billion (2005)
Currency (code): euro (EUR)
Exchange rates: euros (EUR) per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)

NOTE: The economy information regarding Italy on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Italy Economy 2008 information contained here. All suggestions for corrections of any errors about Italy Economy 2008 should be addressed to the CIA.