Italy is one of the industrialized countries. It takes an active part in the current international development. Experts characterize it as a country with a high level of development, in which a post-industrial economy has been established.
After the end of the Second World War, its economy was actively developing, which entailed the growth of Italy's GDP. The main reason for this lies in the active influx of American capital, complemented by the improvement of the tourism industry and cheap labor.
Overview of the country's economy
At the present stage of development, the state is one of the largest in the economic sphere. Italy's GDP per capita is similar to those of countries such as the UK, France. And, as you know, these countries, including Germany, are leaders in GDP growth in the European Union.
At the moment, the country is running a pronounced budget deficit, which goes beyond the normal 3%, but it is in the euro area.
The economy has a characteristic feature in the form of a division into the southern agrarian half and the industrial northern regions. Moreover, Italyhighly dependent on energy resources - the country imports more than 75% of energy along with a huge share of raw materials. From this side, its economy is vulnerable.
A closer look at the structure of Italy's GDP shows that an important part of it is the service sector along with tourism. The country has all the prerequisites for the development of the latter, because Italy has a rich historical past.
Unemployment rates fluctuate somewhat under the influence of internal and external factors. Its average value is about 7.9%, although in some regions it exceeds the mark of 20%.
Sectoral structure of the Italian economy
Pay attention. In general, the sectoral structure of Italy's GDP is as follows:
- agricultural sector – 2%;
- industrial production – 26.7%;
- service sector – 71.3%.
The distribution is uneven. A significant part of the industry in Italy's GDP is income from the manufacturing and extractive sectors of the economy. A small part comes from agriculture.
Specialists draw attention to the fact that there are very few minerals on Italian territory. It is not surprising that it imports both mineral resources and the bulk of energy.
In the early 80s of the twentieth century, the nuclear energy industry was actively developed. But by the end of the decade, it was curtailed by the results of a referendum. Therefore, now partly the internal needs of the state for electricitysatisfied through imported resources.
Agriculture plays a minor role in Italy's GDP. There has been a trend towards an increase in the number of small farms with a minimum level of profitability. Moreover, the farms themselves are deployed on relatively small areas of several hectares, which is significantly less than the average European size of farms in other EU countries.
The emphasis is on the production of wine, olives, olive oil and citrus fruits. The total share of livestock production is about 40%. Italian cheeses and olive oil have become symbols of this country along with pizza and spaghetti!
The most developed in the category of manufacturing industry were the production of cars and agricultural machinery along with mechanical engineering. In addition, some manufacturers of textiles, ceramic tiles and furniture factories have received world fame and recognition.
Characteristics of individual sectors of the economy
In general, the structure of Italy's GDP is determined by the peculiarities of its economy. Today, it is in the post-industrial stage of development, the service sector has retained its leading position for many years (more than 70%). This is largely due to a modest resource base and high rates of imports of the necessary energy. The country buys a significant part of the latter from Russia.
Modern Italy is somewhat behind in the manufacture of technically complex and science-intensive products. The manufacturing industry is developed here along with the light industry.
About 35-40% of all industrial workers are employed in mechanical engineering. It provides about 1/3 of the country's total exports. Mostly we are talking about computers and cars. The chemical sector is also active, specializing in the production of tires for cars, plastics, pharmaceutical products and other things.
Products from the food industry contribute to Italy's GDP. The country holds a leading position in the production of pasta along with fruit preserves and wine.
Different directions are represented in the service sector of the country. But among them, the banking sector is leading along with tourism.
The role of tourism in the Italian economy
Tourism has a special place in the modern Italian economy. Not surprisingly, the government pays special attention to it. According to recent studies, the country has been included in the ranking of the most visited modern countries by tourists for several years.
This feature also has negative sides. Thus, in recent years there has been a very serious economic crisis that has affected many countries and regions around the world. It was he who contributed to a serious reduction in the flow of tourists.
If previously the tourism industry brought about 19% of Italy's GDP, now this figure barely reaches 12%. A noticeable difference.
Italian GDP by years
Important information. In recent years, experts in the economic sphere have noted a pronounced decrease inGDP growth for Italy. So, already after the 2000s, this indicator was limited to 1.5% on average. Moreover, these data were recorded during the period when GDP growth in the European Union remained at around 2.4%.
A close examination of Italy's GDP over the years can clearly trace the influence of external factors on the country's economy. So, in 2008-2009. Against the backdrop of another crisis, there was a significant reduction in exports, which is the country's main economy. Against this background, there was a negative GDP growth in 2008 (-1.3%), as well as in 2009 (-5.2%).
The trend towards a slight increase has been outlined only since 2010, when GDP again gained positive values of 1.8%.
In general, the period 2008-2016 is characterized by a pronounced decline in GDP. Average annual growth rates across the country were negative or close to zero.
Comparison of Italian GDP with similar indicators of some countries of the world
What's the difference? In recent years, Italy's GDP has exceeded that of countries such as Austria, Switzerland, and Slovenia. Large enough.
At the same time, in the same period, Italy's GDP is significantly less than that of the United States, China, Japan, Great Britain, Germany and France. But it is important to note something else. Italian GDP per capita is greater than that of Slovenia and China. In short, there are differences.
When comparing the GDP of Russia and Italy, the leadership of the latter is clearly traced. At the same time, in the Russian Federation, the gross domestic product relative to the public debt does not exceed 9%, while in Italy it is 120%. Besides,despite a larger GDP, the Italian budget has often experienced deficits in recent years, unlike the Russian one.
Real GDP per capita of the country
According to the data for 2015, in Italy, the GDP per capita amounted to 34 thousand dollars, which exceeded the same indicators of the previous period. But in general, during 2006-2015, there was a decrease in the real indicator by about 4 thousand dollars. That is, the growth of the gross domestic product in terms of PPP per capita stopped at -1.1%.
According to available statistics, GDP per capita reached its maximum in 2007, with a minimum in 2014 (only $33,000).
Current state
Recently, experts have recorded a pronounced decline in GDP per capita. It averages around 0.4% when analyzed over the past two decades.
There is an increase in the Italian economy compared to 1998 by 6.2% with an increase in population over the same time by 6.6%. This led to a decrease in the per capita rate in the country.
Events on the world stage in recent years have been unfolding very rapidly. Despite the fact that Italy is part of the Eurozone, this does not guarantee a stable GDP growth. Even taking into account the fact that Greece was seriously affected by the global crisis, its GDP is larger than in Italy.
Earlier, the IMF published forecasts forwhich expected a pronounced increase in GDP. But against the backdrop of restlessness in the global economy as a whole, expectations were only partially met.
Results
GDP is a serious macroeconomic indicator for any modern state. It reflects the market value of services and goods that were produced during the year in the country for both export and consumption.
