February 19, 2010
Italian Economy
Vladimir Gonzalez asked:
Italy Economy
After once being the dominant political, military and economic power in the world, the post-war era of rapid industrialization left its mark on the Italian economy, which, today goes under the name of the ‘Sick Man of Europe’. In 2007, Italy had a population of 58 million and a GDP (PPP) of almost $1.8 trillion. Italy is the tenth largest economy, in terms of purchasing power parity, and the seventh largest in terms of nominal GDP.
At the end of World War II, Italy found itself at the heart of western European institutions, such as NATO, G8, the OECD, and the European Union. Italy moved rapidly from an agricultural economy to being an industrial power, and currently an industry led by services, which today make up 69 per cent of Italy’s economy, followed by industry 29 per cent, and agriculture 2 per cent.
With an extremely small bur robust medium enterprise sector, having family businesses Italy has not been so successful in its attempt to establish its multinational corporations. Well-known brand names from the fashion world, or wine or automotive industries, have once been family businesses. But since many of these companies are not highly technologically developed are facing increasing pressures from a globalized economy where manufactured goods can be produced at much cheaper prices in other countries.
As a result, growth rates have been slowed to virtually zero and in 2007, the GDP growth was 1.5%, just a little above its prior average. Among the difficulties faced by Italy over time, there have been the high levels of corruption and organized crime, big unemployment and debt levels, illegal immigration as well as an easily seen difference between the north, advanced, and the south, poor.
By 1995, Italy’s debt reached as much as 124 per cent of GDP. The repeated attempts to bring these figures down have no been very successful, and officially, it is still close to 100 per cent. Though unemployment has steadily declined and now averages 6 per cent, it the south it reaches well over 20 per cent.
On the other hand, inflation, a major challenge for Italy, has in time been taken to manageable levels, though it is believed that prices have actually doubled with the introduction of Euro, and also due to thanks to the high corruption levels. Import growth is still outpacing export growth, which resulted in a trade deficit in 2000, of over $1.3 billion, less than in 1999, $14 billion, and in 1996, $60 billion.
Graco Paint Sprayer
Italy Economy
After once being the dominant political, military and economic power in the world, the post-war era of rapid industrialization left its mark on the Italian economy, which, today goes under the name of the ‘Sick Man of Europe’. In 2007, Italy had a population of 58 million and a GDP (PPP) of almost $1.8 trillion. Italy is the tenth largest economy, in terms of purchasing power parity, and the seventh largest in terms of nominal GDP.
At the end of World War II, Italy found itself at the heart of western European institutions, such as NATO, G8, the OECD, and the European Union. Italy moved rapidly from an agricultural economy to being an industrial power, and currently an industry led by services, which today make up 69 per cent of Italy’s economy, followed by industry 29 per cent, and agriculture 2 per cent.
With an extremely small bur robust medium enterprise sector, having family businesses Italy has not been so successful in its attempt to establish its multinational corporations. Well-known brand names from the fashion world, or wine or automotive industries, have once been family businesses. But since many of these companies are not highly technologically developed are facing increasing pressures from a globalized economy where manufactured goods can be produced at much cheaper prices in other countries.
As a result, growth rates have been slowed to virtually zero and in 2007, the GDP growth was 1.5%, just a little above its prior average. Among the difficulties faced by Italy over time, there have been the high levels of corruption and organized crime, big unemployment and debt levels, illegal immigration as well as an easily seen difference between the north, advanced, and the south, poor.
By 1995, Italy’s debt reached as much as 124 per cent of GDP. The repeated attempts to bring these figures down have no been very successful, and officially, it is still close to 100 per cent. Though unemployment has steadily declined and now averages 6 per cent, it the south it reaches well over 20 per cent.
On the other hand, inflation, a major challenge for Italy, has in time been taken to manageable levels, though it is believed that prices have actually doubled with the introduction of Euro, and also due to thanks to the high corruption levels. Import growth is still outpacing export growth, which resulted in a trade deficit in 2000, of over $1.3 billion, less than in 1999, $14 billion, and in 1996, $60 billion.
Graco Paint Sprayer
