Scarica Economic of Italy ( in inglese) e più Appunti in PDF di Inglese solo su Docsity! STRUCTURE OF ITALY ECONOMY from the economic point of view, in the second post war, Italy was one of the most dynamic countries on the European continent, completing the process of transformation from essentially agricultural country to a large industrial economic. Currently, in fact, Italy represents the seventh economic power of the planet by nominal GDP, behind the United States, Japan, Germany, China, Great Britain and France, at the same time as the fifth place for the value of exports and the imports made in 2007 (world bank 2007). Italy’ s economy was heavily impacted by the global financial crisis and only emerged from recession in 2015,however in 2018 the country’s GDP was still 4% lower than the 2007 level. In 2019 the economy stagnated due to several factors, including the uncertain political situation and the Eurozone slowdown. The Italy’s GDP has only increased by 0.3% in 2019, compared to 0.8% in 2018 (IMF). According to the updated IMF forecasts from 14th April 2020, due to the outbreak of the COVID-19,GDP growth is expected to fall to -9.1% in 2020 and pick up to 4.8% in 2021, subject to the post-pandemic global economic recovery. SECTORS OF ECONOMICS PRIMARY SECTOR Italy is one of the main agricultural players in the EU, being the biggest European producer of rice, fruits, vegetables and wine. The agricultural sector represents 1.9% of Italian GDP and is heavily reliant on the import of raw materials utilised in agricultural production due to the country’s limited natural resources (Italian imports of raw materials are responsible for more than 80% of the country’s energy). The primary sector employs around 4% of the workforce (World Bank, 2020). Italy’s main crops include cereals (particularly wheat), corn, barley, rice and oats. Italy is also the first world producer of wine. SECONDARY SECTOR INDUSTRY Italy is a primary industrial country, with the secondary sector accounting for 21.4% of GDP and employing 26% of the active population (World Bank, 2020). The country’s industrial activity is concentrated in the northern part of the country, including cities such as Turin, Milan and Venice. Much of Italian industry is comprised of small and medium-sized family businesses, with the majority of Italian industrial companies having less than 50 employees. Italy is the largest global exporter of luxury goods (clothing, cars, etc.). Other major Italian industries include precision machinery, motor vehicles, chemical products, pharmaceuticals, electrical items, fashion and clothing. The country has suffered from deindustrialisation (especially during the global financial crisis), but it remains Europe's second largest manufacturing power and the seventh largest worldwide. Tertiary (production of services) This is the sector in which the majority of the Italian population is employed (administration, education, health, commerce, transport and various services). Among these work areas, tourism is certainly the sector that plays a fundamental role at an economic level more than others. In addition to the countless historical and archaeological sites, Italy is rich in monuments and works of art that are visited every year by millions of foreigners. Particularly important is the seaside and winter tourism, linked to ski resorts, which in recent years has developed increasingly thanks to an improvement in accommodation and modernization of the systems. Exports from Italy Since the country’s manufacturing sector is specialized in high-quality goods, Italy plays an important role in the global market of luxury goods. The country’s main exports are mechanical machinery and equipment. Imports to Italy Italy’s main imports are fuels, which account for around 17% of total imports. This is due to the country’s lack of natural resources, which makes it highly dependent on energy imports. Other imports include machinery (14.2%), raw materials (10.0%) and food (7.0%)— Italy is a net food importer because the landscape is not suitable for developing agriculture.
