Italy has an industrialised economy. Its major trading partners are USA, China, Japan, Turkey, and Russia. Most of Italy's economic activity is based on the manufacturing and processing of goods.

Gross domestic product (GDP)

The gross domestic product for 2010 Q4 was EUR 305,985 million, increasing 0.05% over the previous quarter.

(Source:istat.it)

GDP per capita at PPP

The GDP per capita at purchasing power parity (PPP) was USD 29,418 billion in 2010, as compared to USD 29,068 billion in 2009, thus increasing by 1.20%.

Alternatively GDP per capita in 2010 was USD 33,829 billion declining 4.53% from the previous year.

 

(Source: dfat.gov)                                                                               

Gross domestic product at PPP

 

Source: dfat.gov

Italy's Gross domestic product at PPP increased from USD 1721.2 billion in 2006, to USD 1813.2 billion in 2008.  However, it declined in 2009 to USD 1,737.70 billion. The economy rebounded in 2010, increasing 1.92% to USD 1771.1 billion

Gross national income (GNI) per capita at PPP

In 2009, the nation’s gross national income (GNI) per capita, PPP was USD 31,360.

(Source: dfat.gov, worldbank)

Income tax rate

Income tax on individual incomes in Italy varies from 23% to 43%. Additonally, the country’s direct taxation includes a regional tax of 0.9% to 1.4% and a municipal tax of 0.1% to 0.8%.

 

Tax rate for individuals (EUR)	Tax (%)
0 - 15,000	23
15,001-28,000	27
28,001-55,00	38
55,001-75,000	41
75,001 and over	43

 (Source: taxrates)

Corporate tax

Standard corporate tax in Italy is 31.4%.

(Source: taxrates)

Inflation rate

The inflation rate in Italy has witnessed fluctuations, varying from a high of 3.5% in 2008 to a low of 0.8% in 2009.

(Source:bancaditalia.it)

 FDI inflow

From 2005 to 2007, FDI inflow increased from USD 19.64 billion to USD 40 billion. However, in 2008, FDI inflow declined to USD 15.44 billion, but further in 2009 it increased 87.7% to USD 28.98 billion.

(Source: worldbank) 

Portfolio investments

 

Portfolio Investments (EUR million)
	Dec. 2010	Dec. 2009
Equities	2,254	5,114
Debt securities	-11,639	227

 (Source:bancaditalia.it)

Banking sector assets

In 2009, the Italian banking sector assets were:

 

Italian banks assets for 2009
Assets	Amounts (EUR million)
Cash	11,647
Debt securities ( including government securities)	228,532
Loans	1,760,751
External assets	324,809
Shares and other equity	151,583
Claims on resident MFIs (Loans, Securities, and Other assets)	1,214,646
Total Assets	3,691,968

(Source: bancaditalia.it

Consumer price index

 (Source: istat.it)

 The consumer price index in 2010 steadily increased from 138.5 in January to 140.9 in December.

 Wholesale price index

(Source: istat.it)

The Wholesale Price Index, also known as the Producer’s Price Index (PPI), is a measure of inflation at the wholesale level. In 2010 PPI rose steadily, reaching 112.3 by the end of November.

(Source: istat.it)

Interest rate

 

Interest rates 2010
	Loans		Deposits
Month	Households	Non-financial institutions
January	4.64	3.20	0.66
February	4.58	3.16	0.63
March	4.55	3.12	0.63
April	4.53	3.10	0.61
May	4.47	3.08	0.59
June	4.35	2.97	0.60
July	4.36	3.01	0.61
August	4.37	3.06	0.63
September	4.36	3.11	0.65
October	4.34	3.11	0.66
November	4.36	3.16	0.68

 (Source: bancaditalia.it)

Government expenditure

(Source: bancaditalia.it)

In 2009, government expenditure substantially increased by 6.28% compared to 2008.

 Official exchange rate

(Source: mef.gov.it)

USD per EUR exchange rate for 2009 valued at 1.39, decreased over the 2008 value of 1.47.

Government finances

Sovereign Debt Dynamics 

Fiscal Balance

The country witnessed a considerable increase in the fiscal deficit from EUR 23,191 million in 2007 to EUR 80,800 million in 2009. However, in 2010 the government estimated the fiscal deficit to decrease by 3.32% over 2009.

(Source: mef.gov.it)

Total revenue

The country’s total revenue steadily rose from 2005 to 2009, however, a minor decrease was noted in 2008. In 2009, revenue from direct taxes was a major contributor, accounting for 14.6% of the total revenues.

(Source: bancaditalia.it)

Tax revenue

 

Tax revenue decreased from 2007 to 2009, but was expected to rise to EUR 446,981 million in 2010. The country’s tax revenue, as a percentage of GDP, was 29.1% stable of in 2009.

(Source: mef.gov.it)

Current account balance

The current account balance of Italy registers a deficit of EUR 9,955 million as of 2010 Q3.

(Source: bancaditalia.it)

Balance of payment

 

Balance of payments ( EUR billions)
	2010 Q3	2009 Q3
Current Account	-9,955	-4,320
Capital Account	-114	-110
Financial Account	21,647	-43,383
Errors and omissions	-11,578	47,813

 (Source:bancaditalia.it)

Labour force

Labour force in Italy was recorded at 24,970,000 people in 2009, decreasing 0.5% over 2008. Italian nationals constituted about 91.44% of the labor force, while foreigners accounted for 8.56%.

(Source: bancaditalia.it)

Labour force participation rate

In 2009, the labour participation rate for those between 15 and 64 years was recorded at 62.4%, showing a decline of 0.6% compared to 2008.

(Source: bancaditalia.it)

Unemployment rate

(Source:bancaditalia.it)

The unemployment rate in November 2010 was 8.7% of the total population. Specifically, the unemployment rate for males is 7.8%, while for females it is 10%.

(Source: istat.it)

Employment

From 2008 (Q3) to 2010 (Q3), the growth rate has witnessed positive rise only in Q1 2010.

 

(Source:bancaditalia.it)

Level of unionization

The major labour welfare unions in Italy are: Italian General Confederation of Labour, Confederation of Trade Unions in Italy and Italian Workers Union.

(Source: fedee)

Government stability

Silvio Berlusconi serves as the current Prime Minister of the country.

The political parties in Italy are:

Centre-Right governmentparties 

• Popolo della Libertà (PdL – People of Liberty)
• Lega Nord (Northern League)

Opposition parties

• Partito Democratico (PD - Democratic Party)
• Italia dei Valori (IdV - Italy of Values
• Unione di Centro (UDC- Union of the Centre)

(Source: fco.gov.uk, civitas.org.uk)

Regulatory environment

Country’s economic freedom score is 60.3, ranking it as the 87^th freest country in the 2011 Index. Furthermore, Italy ranks 36^th out of the 43 countries in the Europe region. 

(Source: heritage.org)

Corruption perception

 

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide.  Italy slipped from 63^th in 2009 to 67^th in 2010, with a score of 3.9 and confidence range of 3.3 to 5.1, indicating the increased levels of corruption in the country.

(Source: transparency.org)

Freedom of information

World Press Freedom Index 2010 ranks Italy at 49^th with a score of 15, indicating that media in Italy minimly restricted. The country’s press system is highly regionalised and newspapers are privately owned.

There are more than 2,500 commercial radio stations.

Major newspapers in Italy are:

• Corriere della Sera
• La Repubblica
• IL Messaggero
• La Stampa
• IL Sole 24 Ore

 (Source:rsf.org,BBC)

Judicial system

In Italy, Constitutional Court isthe highest judicial authority, consisting of 15 judges of which, 5 are appointed by the president, 5 elected by the parliament and 5 elected by the administrative supreme and ordinary courts.

In addition to constitutional court, the other court is Court of Cassation.

(Source: rogerdarlington.me.uk)

Population

The total population of Italy for 2010 was recorded at 60.34 million, increasing 0.49% over 2009.

(Source: istat.it)

In 2010, males accounted for 51.5% of the total population. Hence, the gender ratio in the country is not balanced, there are about 107.4 males for every 100 females in the country.

In 2010, the population in Italy of below 14 years was 14% of the total population, whereas people in the age groups of 15 to 64 years and 65 years and above constituted for 65.7% and 20.3% respectively. Furthermore, the median age of the country is 43.5 years.

(Source: istat.it, UN)

Mortality rate

In 2010, the mortality rate in Italy was registered at 9.7 per 1,000 live births. The average life expectancy for men is 79.1 years and for females it is 84.3.

Migration and urbanisation

In 2010, the net immigration rate was 6% and total migration rate is recorded at 4.8%.

Source: (istat.it)

The urban population growth rate from 2005 to 2010 was 5.4%, while the rural population growth rate was 3.4%. The total population growth rate was 5.7%.

Ethnicity

The major ethnic group in Italy is Italian, however there are also German, French, Slovene, and Albanian ethnicities.

Source: (istat.it, UN, state.gov)

Human development index (HDI)

The country ranks 23^rd out of 182 countries on the Human Development index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education).

(Source: UNDP)

Education/literacy rate

The country’s literacy rate is 99%. Additonally, compulsory education is from six through fifteen years of age.

(Source: unicef.org)

Education resources

The education system in Italy includes a pre-higher and a higher education systems.

The higher education system includes:

• Universities
• University institutes
• Technical universities
• Higher institutes

The university system consists of 89 university institutions including 55 state universities, 17 non-state, legally recognized university institutes, 12 higher schools or institutes regulated by special legislation, 3 technical universities and 2 universities for foreigners.

(Source: euroeducation)

Healthcare resources

The healthcare system in Italy has maintained a high standard of afforadable medical assistance, provided by the country’s National Health System, the Servizio Sanitario Nazioanale’.

Furthermore, it is mandatory for everyone in Italy, or anyone coming to Italy to have a health insurance, without which a permit to stay in the country is restricted..

(Source: allianzworldwidecare)

Mass public transit

Most of the mass public transport in the country is by roadways, through Buses and Cabs.  However, there are also ferries, railways and airways.

Ports

There are 134 ports in country, including: Port of Napoli, Port of Genoa, Port of Palermo, Port of Bari, Catania, and Port of Trieste.  

(Source:world port source)

Airports

There are about 110 airports in the country. Some of the major airports are:

(Source: Air charter world)

Telecommunications networks

In 2010, the total number of internet users was about 30 million, increasing 1.8 million from 2008.

(Source:internetworldstats)