 Milan is the economic capital of Italy,[1] and is a globalfinancial centre and afashion capital of the world. | |
| Currency | Euro (EUR, €) (Except inCampione d'Italia –CHF) |
|---|---|
| Calendar year | |
Trade organisations | EU,WTO,G-20,G7,OECD,AIIB |
Country group | |
| Statistics | |
| Population |  58,934,177[6] |
| GDP | |
| GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
| 4.5% (2023)[7] | |
Population belowpoverty line | |
| 31.5medium (2023)[12] | |
| |
| 56 out of 100 points (2023)[14] (42nd) | |
Labour force | |
Labour force by occupation |
|
| Unemployment | |
Average gross salary | €2,968 / $3,360 monthly[18][19] (2024) |
| €2,066 / $2,339 monthly[20][21] (2024) | |
Main industries | |
| External | |
| Exports |  $777.594 billion (9th) (2023)[9] |
Export goods | Engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; foodstuffs, beverages, and tobacco; minerals, nonferrous metals |
Main export partners |
|
| Imports | $591 billion (2021)[9] |
Import goods | Engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, tobacco |
Main import partners | |
FDI stock | |
| $59.52 billion (2019 est.)[9] | |
Grossexternal debt | $3.024 trillion (31 December 2020)[23] |
| Public finances | |
| $211.3 billion (November 2022 est.)[9] | |
| Revenues | 47.1% of GDP (2019)[25] |
| Expenses | 48.7% of GDP (2019)[25] |
| Economic aid |
|
All values, unless otherwise stated, are inUS dollars. | |
Theeconomy of Italy is ahighly developedsocial market economy.[33] It is the third-largest national economy in theEuropean Union, the8th-largest economy in the world by nominal GDP, and the11th-largest by PPP-adjusted GDP. The country has the second-largest manufacturing industry inEurope, which is also the7th-largest in the world. Italy has adiversified economy which is dominated by thetertiary service sector. The country is agreat power, and is afounding member of the European Union, theeurozone, theSchengen Area, theOECD, theG7 and theG20;[34] it is theeighth-largest exporter in the world, with $611 billion exported in 2021. Its closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total trade.Its largest trading partners areGermany (12.5%) andFrance (10.3%), followed by theUnited States (9%),Spain (5.2%), theUnited Kingdom (5.2%) andSwitzerland (4.6%).[35]
In the post-World War II period, Italy saw a transformation from an agricultural-based economy which had been severely affected by the consequences of theWorld Wars, into one of the world's most advanced nations,[36] and a leading country inworld trade and exports. According to theHuman Development Index, the country enjoys avery high standard of living. According toThe Economist, Italy has the world's 8th highestquality of life.[37] Italy owns the world's third-largestgold reserve,[38] and is the third-largest net contributor to thebudget of the European Union. Furthermore, the advanced countryprivate wealth is one of the largest in the world.[39] In terms of private wealth, Italy ranks second, afterHong Kong, inprivate wealth to GDP ratio. AmongOECD members, Italy has a highly efficient and strongsocial security system, which comprisesroughly 24.4% of GDP.[5][40][4]
Italy is the world'sseventh-largest manufacturing country,[41] characterised by a smaller number of global multinational corporations than other economies of comparable size and many dynamicsmall and medium-sized enterprises, notoriously clustered in severalindustrial districts, which are the backbone of the Italian economy. Italy is a large manufacturer[42] and exporter[43] of a significant variety of products. Its products includemachinery,vehicles,pharmaceuticals, furniture, food and clothing.[44] Italy has a significanttrade surplus. The country is also well known for its influential and innovative business economic sector, an industrious and competitive agricultural sector (Italy is the world's largest wine producer),[45] andmanufacturers of creativelydesigned, high-quality products: includingautomobiles,ships,home appliances, anddesigner clothing. Italy is the largest hub forluxury goods in Europe and the third-largest luxury hub globally.[46][47] Italy has a strongcooperative sector, with the largest share of the population (4.5%) employed by a cooperative in the EU.[48]
Despite these important achievements, the country's economy today suffers from few structural and non-structural problems.Annual growth rates have often been below the EU average. Italy was somewhat hit by thelate-2000s recession. Massive government spending from the 1980s onwards has produced a severe rise inpublic debt. In addition, Italian living standards are extremely high on average, but have a considerableNorth–South divide: the average GDP per capita in the much richerNorthern Italy significantly exceeds the EU average, while some regions and provinces inSouthern Italy are significantly below the average. InCentral Italy, GDP per capita is instead average.[49][50] In recent years, Italy's GDP per capita growth slowly caught-up with the eurozone average,[51] while its employment rate also did. However, economists dispute the official figures because of the large number ofinformal jobs (estimated to be between 10% and 20% of thelabour force) that lift the inactivity orunemployment rates.[52] Theshadow economy is highly represented in Southern Italy, while it becomes less intense as one moves north. In real economic conditions, Southern Italy almost matches Central Italy's level.[53]
The Italian Renaissance was remarkable in economic development.Venice andGenoa were the trade pioneers, first asmaritime republics and then as regional states, followed byMilan,Florence, and the rest of northern Italy. Reasons for their early development are for example the relative military safety of Venetian lagoons, the high population density and the institutional structure which inspired entrepreneurs.[54] The Republic ofVenice was the first realinternational financial center, which slowly emerged from the 9th century to its peak in the 15th century.[55] Tradeablebonds as a commonly used type of security, were invented by theItalian city-states (such as Venice andGenoa) of the latemedieval and earlyRenaissance periods.
After 1600 Italy experienced an economic catastrophe. In 1600 Northern and Central Italy comprised one of the most advanced industrial areas of Europe. There was an exceptionally high standard of living.[56] By 1870 Italy was an economically backward and depressed area; its industrial structure had almost collapsed, its population was too high for its resources, its economy had become primarily agricultural. Wars, political fractionalization, limited fiscal capacity and the shift of world trade to north-western Europe and the Americas were key factors.[57][58]
The economic history of Italy after 1861 can be divided in three main phases:[59] an initial period of struggle after the unification of the country, characterised by high emigration and stagnant growth; a central period of robust catch-up from the 1890s to the 1980s, interrupted by theGreat Depression of the 1930s and the two world wars; and a final period of sluggish growth that has been exacerbated by a double-dip recession following the 2008 global financial crush, and from which the country is slowly reemerging only in recent years.
Prior to unification, the economy of the many Italian statelets was overwhelmingly agrarian; however, the agricultural surplus produced what historians call a "pre-industrial" transformation in North-western Italy starting from the 1820s,[60] that led to a diffuse, if mostly artisanal, concentration of manufacturing activities, especially inPiedmont-Sardinia under the liberal rule of theCount of Cavour.[61]
After thebirth of the unified Kingdom of Italy in 1861, there was a deep consciousness in the ruling class of the new country's backwardness, given that the per capita GDP expressed in PPS terms was roughly half of that of Britain and about 25% less than that of France and Germany.[59] During the 1860s and 1870s, the manufacturing activity was backward and small-scale, while the oversized agrarian sector was the backbone of the national economy. The country lacked large coal and iron deposits[63] and the population was largely illiterate. In the 1880s, a severefarm crisis led to the introduction of more modern farming techniques in thePo valley,[64] while from 1878 to 1887protectionist policies were introduced with the aim to establish a heavy industry base.[65] Some large steel and iron works soon clustered around areas of highhydropower potential, notably the Alpine foothills and Umbria in central Italy, whileTurin andMilan led a textile, chemical, engineering and banking boom andGenoa captured civil and militaryshipbuilding.[66]
However, the diffusion of industrialisation that characterised the northwestern area of the country largely excluded Venetia and, especially, theSouth. The resultingItalian diaspora concerned up to 26 million Italians, the most part in the years between 1880 and 1914; by many scholars, it is considered the biggest mass migration of contemporary times.[67] During theGreat War, the still frail Italian state successfully fought a modern war, being able of arming and training some 5 million recruits.[68] But this result came at a terrible cost: by the end of the war, Italy had lost 700,000 soldiers and had a ballooning sovereign debt amounting to billions oflira.
Italy emerged fromWorld War I in a poor and weakened condition. TheNational Fascist Party ofBenito Mussolini came to power in 1922, at the end of a period of social unrest. However, once Mussolini acquired a firmer hold of power, laissez-faire and free trade were progressively abandoned in favour of government intervention andprotectionism.[69]
In 1929, Italy was hit hard by theGreat Depression.[70] In order to deal with the crisis, the Fascist government nationalized the holdings of large banks which had accrued significant industrial securities, establishing theIstituto per la Ricostruzione Industriale.[71] A number of mixed entities were formed, whose purpose was to bring together representatives of the government and of the major businesses. These representatives discussed economic policy and manipulated prices and wages so as to satisfy both the wishes of the government and the wishes of business.[69]
This economic model based on a partnership between government and business was soon extended to the political sphere, in what came to be known ascorporatism. At the same time, the aggressive foreign policy of Mussolini led to increasing military expenditure. After the invasion ofEthiopia, Italy intervened to supportFranco's nationalists in theSpanish Civil War. By 1939, Italy had the highest percentage of state-owned enterprises after theSoviet Union.[69]
Italy's involvement inWorld War II as a member of theAxis powers required the establishment of awar economy. TheAllied invasion of Italy in 1943 eventually caused the Italian political structure – and the economy – to rapidly collapse. The Allies, on the one hand, and the Germans on the other, took over the administration of the areas of Italy under their control. By the end of the war, Italian per capita income was at its lowest point since the beginning of the 20th century.[72]
After the end of World War II, Italy was in rubble and occupied by foreign armies, a condition that worsened the chronic development gap among the more advanced European economies. However, the new geopolitical logic of theCold War made possible that the former enemy Italy, a hinge country between Western Europe and theMediterranean, and now a new, fragile democracy threatened by theNATO occupation forces, the proximity of theIron Curtain and the presence of a strongCommunist party,[76] was considered by the United States as an important ally for theFree World, and received under theMarshall Plan over US$1.2 billion from 1947 to 1951.
The end of aid through the Plan could have stopped the recovery but it coincided with a crucial point in theKorean War whose demand for metal and manufactured products was a further stimulus of Italian industrial production. In addition, the creation in 1957 of theEuropean Common Market, with Italy as a founding member, provided more investment and eased exports.[77]
These favourable developments, combined with the presence of a large labour force, laid the foundation for spectacular economic growth that lasted almost uninterrupted until the "Hot Autumn's" massive strikes and social unrest of 1969–70, which then combined with the later1973 oil crisis and put an abrupt end to the prolonged boom. It has been calculated that the Italian economy experienced an average rate of growth of GDP of 5.8% per year between 1951 and 1963, and 5% per year between 1964 and 1973.[77] Italian rates of growth were second only, but very close, to theWest German rates, in Europe, and among theOEEC countries only Japan had been doing better.[78]
The 1970s were a period of economic, political turmoil and social unrest in Italy, known asYears of lead. Unemployment rose sharply, especially among the young, and by 1977 there were one million unemployed people under the age of 24. Inflation continued, aggravated by the increases in the price of oil in 1973 and 1979. The budget deficit became permanent and intractable, averaging about 10 per cent of the gross domestic product (GDP), higher than any other industrial country. The lira fell steadily, fromLire 560 to the U.S. dollar in 1973 to Lire 1,400 in 1982.[79]
The economic recession went on into the mid-1980s until a set of reforms led to the independence of theBank of Italy[80] and a big reduction of the indexation of wages[81] that strongly reduced inflation rates, from 20.6% in 1980 to 4.7% in 1987.[82] The new macroeconomic and political stability resulted in a second, export-led "economic miracle", based onsmall and medium-sized enterprises, producing clothing, leather products, shoes, furniture, textiles, jewellery, and machine tools. As a result of this rapid expansion, in 1987 Italy overtook the UK's economy (an event known asil sorpasso), becoming the fourth richest nation in the world, after the US, Japan andWest Germany.[83] TheMilan stock exchange increased its market capitalization more than fivefold in the space of a few years.[84]
However, the Italian economy of the 1980s presented a problem: it was booming, thanks to increased productivity and surging exports, but unsustainable fiscal deficits drove the growth.[83] In the 1990s, the newMaastricht criteria boosted the urge to curb the public debt, already at 104% of GDP in 1992.[85] The consequent restrictive economic policies worsened the impact of theglobal recession already underway. After a brief recovery at the end of the 1990s, high tax rates andred tape caused the country to stagnate between 2000 and 2008.[86][87]
Italy was among the countries hit hardest by theGreat Recession of 2008–2009 and the subsequentEuropean debt crisis. The national economy shrunk by 6.76% during the whole period, totaling seven-quarters of recession.[88] In November 2011 the Italian bond yield was 6.74 per cent for 10-year bonds, nearing a 7 per cent level where Italy is thought to lose access to financial markets.[89] According toEurostat, in 2015 theItalian government debt stood at 128% of GDP, ranking as the second biggest debt ratio afterGreece (with 175%).[90] However, the biggest chunk of Italian public debt is owned by Italian nationals and relatively high levels of private savings and low levels of private indebtedness are seen as making it the safest among Europe's struggling economies.[91][92] As a shock therapy to avoid the debt crisis and kick-start growth, thenational unity government led by the economistMario Monti launched a program of massiveausterity measures, that brought down the deficit but precipitated the country in adouble-dip recession in 2012 and 2013, receiving criticism from numerous economists.[93][94]
In the period 2014-2019, the economy partially recovered from the disastrous losses incurred during theGreat Recession, primarily thanks to strong exports, but nonetheless, growth rates remained well below theEuro area average, meaning that Italy's GDP in 2019 was still 5 per cent below its level in 2008.[95]
Starting from February 2020, Italy was the first country of Europe to be severely affected by theCOVID-19 pandemic,[96] that eventually expanded to the rest of the world.The economy suffered a massive shock as a result of thelockdown of most of the country's economic activity. After three months, at the end of May 2020, the pandemic was put under control, and the economy started to recover, especially, the manufacturing sector. Overall, it remained surprisingly resilient, although GDP plummeted like in most western countries.[97][98]The Italian government issued special treasury bills, known as BTP Futura[99] as a COVID-19 emergency funding, waiting for the approval of theE.U. response to the outbreak.[100] Eventually, in July 2020, theEuropean Council approved the 750 billion €Next Generation EU fund,[101] of which €209 billion will go to Italy.[102]
Beginning in 2022, after the COVID-19 pandemic, Italy restarted with a resilient economy[103] which nonetheless had to face theglobal energy crisis of 2021-2023, involving an increase in gas and other energy prices due to theRussian invasion of Ukraine on 24 February 2022. This crisis created the need to find an alternative supplier to Russia, subject toEuropean Union sanctions.With rising energy prices, inflationrose in Europe, which was addressed by theEuropean Central Bank with a progressive increase in interest rates.Furthermore, the PNRR (Piano Nazionale di Ripresa e Resilienza [it]) had to be re-calibrated and re-agreed with theEuropean Union, to address the new geopolitical situation which led to theenergy crisis and damage to supply chains, causing shortages in raw materials.[104] In March 2023, theUnited States banking crisis occurred with some bankruptcies and restructuring of American banks, however it was soon understood that it was a short-lived economic-financial phenomenon limited to the United States, although with some concern, it has not had an impact in the European area, with the exception of the collapse ofCredit Suisse, inSwitzerland. As a consequence, Italy is witnessing a tightening of its credit policies.
For Italian banks, there was an opportunity to strengthen themselves, thanks to the high rates imposed by theEuropean Central Bank. The new BTP Valore bonds were released, which were very successful among the private operators to whom they were marketed due to the high interest rates.[105][106] From October 7, 2023, geopolitical tensions are becoming more intense, related to theconflict in the Middle East. In 2024, however, the Italian economy continues to maintain its resilient strength, thanks to the reduction in energy prices, and the maintenance or reduction of oil prices, this stability allows a reduction in inflation. In September 2024, the European Central Bank has decreased interest rates by 0.25 percentage points. The Italian economy copes with a geopolitical scenario that was significantly deteriorating with the exacerbation of ongoing war conflicts. Strategic assets are better protected, in particular thedefense sector. Furthermore, the implementation of the PNRR plan, which must be completed by 2026, has brought benefits to many economic sectors.[107][108]
Italy has a long history of different coinage types, which spans thousands of years. Italy has been influential at a coinage point of view: the medievalFlorentine florin, one of the most used coinage types in European history and one of the most important coins in Western history,[109] was struck inFlorence in the13th century, while theVenetian sequin, minted from 1284 to 1797, was the most prestigious gold coin in circulation in the commercial centers of theMediterranean Sea.[110]
Despite the fact that the first Italian coinage systems were used in theMagna Graecia andEtruscan civilization, theRomans introduceda widespread currency throughout Italy. Unlike most modern coins, Roman coins had intrinsic value.[111] The early modern Italian coins were very similar in style to French francs, especially in decimals, since it was ruled by the country in theNapoleonic Kingdom of Italy. They corresponded to a value of 0.29 grams of gold or 4.5 grams of silver.[112]
Since Italy has been for centuries divided into manyhistoric states, they all had different coinage systems, but when the country becameunified in 1861, theItalian lira came into place, and was used until 2002. The term originates fromlibra, the largest unit of theCarolingian monetary system used in Western Europe and elsewhere from the 8th to the 20th century.[113] In 1999, theeuro became Italy'sunit of account and the lira became a national subunit of the euro at a rate of 1 euro = 1,936.27 lire, before being replaced as cash in 2002.
The following table shows the main economic indicators in 1980–2023 (with IMF staff estimates in 2024–2029). Inflation below 5% is in green.[114]
| Year | GDP (in Bil. US$PPP) | GDP per capita (in US$ PPP) | GDP (in Bil. US$nominal) | GDP per capita (in US$ nominal) | GDP growth (real) | Inflation rate (in Percent) | Unemployment (in Percent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 614.4 | 10,895.8 | 482.7 | 8,559.5 | 3.1% |  21.8% | 7.4% | n/a |
| 1981 | 676.3 | 11,973.7 | 437.7 | 7,749.8 | 0.6% | 19.5% | 7.6% | n/a |
| 1982 | 719.2 | 12,723.3 | 432.6 | 7,652.9 | 0.2% | 16.5% | 8.3% | n/a |
| 1983 | 754.2 | 13,334.6 | 448.9 | 7,936.2 | 0.9% | 14.7% |  7.4% | n/a |
| 1984 | 805.0 | 14,231.6 | 443.5 | 7,840.8 | 3.0% | 10.7% | 7.8% | n/a |
| 1985 | 852.2 | 15,060.2 | 458.0 | 8,093.6 | 2.6% | 9.0% | 8.2% | n/a |
| 1986 | 893.0 | 15,777.1 | 648.7 | 11,461.2 | 2.7% | 5.8% | 8.9% | n/a |
| 1987 | 943.1 | 16,664.2 | 814.2 | 14,385.8 | 3.1% | 4.7% | 9.6% | n/a |
| 1988 | 1,015.7 | 17,942.2 | 902.0 | 15,934.2 | 4.0% | 5.1% | 9.7% | 95.2% |
| 1989 | 1,089.9 | 19,238.7 | 938.1 | 16,560.6 | 3.3% | 6.2% |  9.7% | 97.9% |
| 1990 | 1,153.1 | 20,338.1 | 1,170.8 | 20,651.8 | 2.0% | 6.4% | 8.9% | 101.1% |
| 1991 | 1,209.2 | 21,309.8 | 1,236.8 | 21,795.7 | 1.4% | 6.2% | 8.5% | 104.7% |
| 1992 | 1,245.7 | 21,941.9 | 1,312.4 | 23,116.6 | 0.7% | 5.0% | 8.8% | 112.3% |
| 1993 | 1,264.6 | 22,255.4 | 1,055.3 | 18,572.9 | -0.8% | 4.5% | 9.8% | 123.4% |
| 1994 | 1,318.4 | 23,193.6 | 1,088.5 | 19,149.5 | 2.1% | 4.2% | 10.6% | 130.1% |
| 1995 | 1,382.1 | 24,314.4 | 1,175.3 | 20,675.3 | 2.7% | 5.4% | 11.2% | 119.4% |
| 1996 | 1,425.3 | 25,073.3 | 1,312.8 | 23,094.4 | 1.3% | 4.0% | 11.2% | 119.1% |
| 1997 | 1,476.4 | 25,957.8 | 1,243.2 | 21,858.5 | 1.8% | 1.8% | 11.2% | 116.8% |
| 1998 | 1,520.0 | 26,712.1 | 1,271.7 | 22,348.1 | 1.8% | 2.0% | 11.3% | 114.1% |
| 1999 | 1,566.5 | 27,526.6 | 1,253.7 | 22,029.7 | 1.6% | 1.7% | 10.9% | 113.3% |
| 2000 | 1,662.7 | 29,208.9 | 1,147.2 | 20,153.1 | 3.8% | 2.6% | 10.1% | 109.0% |
| 2001 | 1,733.3 | 30,429.9 | 1,168.0 | 20,505.9 | 2.0% | 2.3% | 9.1% | 108.9% |
| 2002 | 1,764.8 | 30,964.9 | 1,275.9 | 22,386.3 | 0.3% | 2.6% | 8.6% | 106.4% |
| 2003 | 1,802.1 | 31,513.1 | 1,577.2 | 27,580.5 | 0.1% | 2.8% | 8.5% | 105.5% |
| 2004 | 1,876.8 | 32,577.2 | 1,805.7 | 31,342.8 | 1.4% | 2.3% | 8.0% | 105.1% |
| 2005 | 1,951.5 | 33,621.3 | 1,859.2 | 32,031.4 | 0.8% | 2.2% | 7.8% | 106.6% |
| 2006 | 2,047.8 | 35,131.2 | 1,949.7 | 33,448.1 | 1.8% | 2.2% | 6.9% | 106.7% |
| 2007 | 2,134.4 | 36,478.4 | 2,213.4 | 37,828.3 | 1.5% | 2.0% | 6.2% | 103.9% |
| 2008 | 2,154.4 | 36,513.9 | 2,408.4 | 40,819.0 | -1.0% | 3.5% | 6.8% | 106.2% |
| 2009 | 2,053.7 | 34,561.9 | 2,197.5 | 36,982.8 | -5.3% | 0.8% | 7.9% | 116.6% |
| 2010 | 2,114.0 | 35,415.9 | 2,137.8 | 35,815.6 | 1.7% | 1.6% | 8.5% | 119.2% |
| 2011 | 2,173.2 | 36,250.6 | 2,294.6 | 38,276.0 | 0.7% | 2.9% | 8.6% | 119.7% |
| 2012 | 2,172.4 | 36,143.0 | 2,088.3 | 34,743.8 | -3.0% | 3.3% | 10.9% | 126.5% |
| 2013 | 2,187.4 | 36,288.5 | 2,142.0 | 35,535.0 | -1.8% | 1.2% | 12.4% | 132.5% |
| 2014 | 2,200.3 | 36,460.7 | 2,162.6 | 35,836.2 | 0.0% | 0.2% | 12.8% | 135.4% |
| 2015 | 2,241.5 | 37,175.6 | 1,836.8 | 30,463.7 | 0.8% | 0.1% | 12.0% | 135.3% |
| 2016 | 2,420.4 | 40,230.7 | 1,876.6 | 31,190.8 | 1.3% | -0.1% | 11.7% | 134.8% |
| 2017 | 2,529.5 | 42,111.5 | 1,961.1 | 32,648.8 | 1.7% | 1.3% | 11.3% | 134.2% |
| 2018 | 2,613.9 | 43,610.3 | 2,092.9 | 34,917.6 | 0.9% | 1.2% | 10.6% | 134.4% |
| 2019 | 2,674.0 | 44,702.9 | 2,011.5 | 33,627.9 | 0.5% | 0.6% | 9.9% | 134.1% |
| 2020 | 2,461.9 | 41,279.1 | 1,891.1 | 31,707.1 | -9.0% | -0.1% | 9.3% | 155.3% |
| 2021 | 2,734.6 | 46,164.6 | 2,101.3 | 35,472.8 | 8.3% | 1.9% | 9.5% | 150.9% |
| 2022 | 3,345.9 | 56,682.0 | 2,104.6 | 35,653.8 | 4.0% | 8.7% | 8.1% | 138.1% |
| 2023 | 3,490.5 | 59,164.5 | 2,301.6 | 39,012.0 | 0.9% | 5.9% | 7.6% | 134.5% |
| 2024 | 3,597.9 | 60,992.8 | 2,376.5 | 40,286.8 | 0.7% | 1.2% | 7.0% | 136.8% |
| 2025 | 3,691.2 | 62,603.0 | 2,459.5 | 41,714.4 | 0.8% | 2.1% | 7.1% | 138.6% |
| 2026 | 3,786.0 | 64,262.3 | 2,534.5 | 43,020.0 | 0.7% | 2.0% | 7.3% | 140.1% |
| 2027 | 3,878.5 | 65,905.6 | 2,595.7 | 44,108.3 | 0.6% | 2.0% | 7.4% | 141.3% |
| 2028 | 3,976.4 | 67,663.9 | 2,663.6 | 45,325.3 | 0.7% | 2.0% | 7.5% | 141.9% |
| 2029 | 4,078.0 | 69,507.6 | 2,736.1 | 46,635.8 | 0.7% | 2.0% | 7.6% | 142.3% |
This list displays all 5 Italian companies on theFortune Global 500 List, which ranks the world's largest companies by annual revenue.[115] The figures below are given in millions ofUS dollars and are for thefiscal year 2018.[33] Also listed are the headquarters location, net profit and industry sector of each company.
| Rank | Fortune 500 rank | Name | Industry | Revenue (USD millions) | Profits (USD millions) | Employees | Headquarters |
|---|---|---|---|---|---|---|---|
| 1 | 98 | Enel | Electric utility | 103,311 | 3,717 | 61,055 | Rome |
| 2 | 97 | Eni | Oil and gas | 102,502 | 5,158 | 33,142 | Rome |
| 3 | 245 | Assicurazioni Generali | Insurance | 57,023 | 4,051 | 81,879 | Trieste |
| 4 | 283 | Intesa Sanpaolo | Finance | 52,004 | 8,351 | 94,368 | Turin |
| 5 | 314 | UniCredit | Banking | 48,044 | 10,278 | 70,752 | Milan |
In 2022, the sector with the highest number of companies registered in Italy is Services with 654,065 companies followed by Retail Trade and Finance, Insurance, and Real Estate with 519,448 and 348,881 companies respectively.[116]
Italy has 1.3 million people with a net wealth greater than $1 million, a total national wealth of $11.020 trillion, and represents the 9th largest cumulative net wealth globally (it accounts for 2.4% of the net wealth in the world).[117] According to theUBS's Global Wealth Databook 2024, themedian wealth per adult is $113,754 (14th in the world),[118] while according to theAllianz's Global Wealth Report 2024, the net financial wealth per capita is €76,930 (14th in the world).[119]
The following top 10 list of Italian billionaires is based on an annual assessment of wealth and assets compiled and published byForbes in 2017.[120]
| Rank (World) | Rank (Italy) | Name | Net Worth ($bn) | Main source | Main sector |
|---|---|---|---|---|---|
| 29 | 1 | Maria Franca Fissolo Ferrero & family | 25.2 | Ferrero SpA | Food |
| 50 | 2 | Leonardo Del Vecchio | 17.9 | Luxottica | Eyewear |
| 80 | 3 | Stefano Pessina | 13.9 | Walgreens Boots | Pharmaceutical retail |
| 133 | 4 | Massimiliana Landini Aleotti | 9.5 | Menarini | Pharmaceutical |
| 199 | 5 | Silvio Berlusconi | 7.0 | Fininvest | Financial services |
| 215 | 6 | Giorgio Armani | 6.6 | Armani | Fashion |
| 250 | 7 | Augusto &Giorgio Perfetti | 5.8 | Perfetti Van Melle | Confectionery |
| 385 | 8 | Paolo &Gianfelice Rocca | 3.4 | Techint | Conglomerate |
| 474 | 9 | Giuseppe De'Longhi | 3.8 | De'Longhi | Small appliance |
| 603 | 10 | Patrizio Bertelli | 3.3 | Prada | Apparels |
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| Rank | Region | GDP €m | 2015 GDP €m | % of Nation | € per capita (2022) |
|---|---|---|---|---|---|
| – |  Italy | 1,946,479 | 1,645,439 | 100.00 | 34,084 |
| 1 |  Lombardy | 439,986.38 | 357,200 | 21.71 | 46,000 |
| 2 |  Lazio | 212,911.42 | 192,642 | 11.09 | 38,800 |
| 3 |  Veneto | 180,173.48 | 151,634 | 9.21 | 38,700 |
| 4 |  Emilia-Romagna | 176,844.9 | 149,525 | 9.08 | 41,600 |
| 5 |  Piedmont | 145,913.79 | 127,365 | 7.74 | 35,700 |
| 6 |  Tuscany | 128,308.37 | 110,332 | 6.70 | 36,500 |
| 7 |  Campania | 119,467.68 | 100,544 | 6.11 | 22,200 |
| 8 |  Sicily | 97,124.1 | 87,383 | 5.31 | 21,000 |
| 9 |  Apulia | 85,960.7 | 72,135 | 4.38 | 22,900 |
| 10 |  Liguria | 53,854.51 | 47,663 | 2.90 | 37,200 |
| 11 |  Marche | 45,859.37 | 40,593 | 2.47 | 32,200 |
| 12 |  Friuli-Venezia Giulia | 43,048.67 | 35,669 | 2.17 | 37,600 |
| 13 |  Sardinia | 37,978.08 | 32,481 | 1.97 | 25,000 |
| 14 |  Calabria | 36,081.42 | 32,795 | 1.99 | 20,300 |
| 15 |  Abruzzo | 34,572.45 | 32,592 | 1.98 | 28,300 |
| 16 |  South Tyrol | 29,106.27 | - | 56,900 | |
| 17 |  Umbria | 24,264.04 | 21,438 | 1.30 | 29,500 |
| 18 |  Trentino | 24,002.76 | - | 46,100 | |
| 19 |  Basilicata | 15,252.69 | 11,449 | 0.69 | 29,500 |
| 20 |  Molise | 7,219.42 | 6,042 | 0.36 | 25,800 |
| 21 |  Aosta Valley | 5,404.03 | 4,374 | 0.27 | 45,700 |
In the decades following theunification of Italy, thenorthern regions of the country,Lombardy,Piedmont andLiguria in particular, began a process of industrialization and economic development while thesouthern regions remained behind.[123] At the time of the unification of the country, there was a shortage of entrepreneurs in the south, with landowners who were often absent from their farms as they lived permanently in the city, leaving the management of their funds to managers, who were not encouraged by the owners to make the agricultural estates to the maximum.[124] Landowners invested not in agricultural equipment, but in such things as low-risk state bonds.[125]
In southern Italy, the unification of the country broke down the feudal land system, which had survived in the south since theMiddle Ages, especially where land had been the inalienable property of aristocrats, religious bodies or the king. The breakdown offeudalism, however, and redistribution of land did not necessarily lead to small farmers in the south winding up with land of their own or land they could work and make profit from. Many remained landless, and plots grew smaller and smaller and so less and less productive, as land was subdivided amongst heirs.[125]
This gap between northern and southern Italy, called "southern question", was also induced by the region-specific policies selected by the post-unitary governments.[126] For example, the 1887 protectionist reform, instead of safeguarding the arboriculture sectors crushed by 1880s fall in prices, shielded the Po Valley wheat breeding and those Northern textile and manufacturing industries that had survived the liberal years due to state intervention.[127] A similar logic guided the assignment of monopoly rights in the steamboat construction and navigation sectors and, above all, the public spending in the railway sector, which represented 53% of the 1861–1911 total.[128]
The resources necessary to finance the public spending effort were obtained through highly unbalanced land property taxes, which affected the key source of savings available for investment in the growth sectors absent a developed banking system.[129] Given the inability of the government to estimate the land profitability, especially because of the huge differences among the regional cadast:ers, this policy irreparably induced large regional discrepancies.[130] This policy destroyed the relationship between the central state and the Southern population by unchaining first a civil war calledBrigandage, which brought about 20,000 victims by 1864 and the militarization of the area, and then favouring emigration, especially from 1892 to 1921.[131]
The north–south gap was intensified by language differences. Southerners spoke theSicilian language or a variation of it: a language that developed from Latin and other influences independently of and prior to the Tuscan dialect that was adopted as the official Italian language ("standard Italian"). TheSicilian language is a complete, distinct language with its own vocabulary, syntax and grammar rules, the latter being less complex than standard Italian. But because of its similarity to Italian, northerners incorrectly assumed that it was an imperfect dialect of Italian and denigrated it as the "dialect of the poor and ignorant". This has led to continued bias by the North against southerners who "don't speak proper Italian".
After the rise ofBenito Mussolini, the "Iron Prefect"Cesare Mori tried to defeat the already powerfulcriminal organizations flourishing in the South with some degree of success. Fascist policy aimed at the creation of anItalian Empire and Southern Italian ports were strategic for all commerce towards the colonies. With the invasion of Southern Italy duringWorld War II, theAllies restored the authority of the mafia families, lost during the Fascist period, and used their influence to maintain public order.[132] Mussolini also established laws requiring standard Italian to be taught in school, and discouraging the use of local Italian dialects throughout the nation, as well as the Sicilian language.
In the 1950s theCassa per il Mezzogiorno was set up as a huge public master plan to help industrialize the South, aiming to do this in two ways: through land reforms creating 120,000 newsmallholdings, and through the "Growth Pole Strategy" whereby 60% of all government investment would go to the South, thus boosting the Southern economy by attracting new capital, stimulating local firms, and providing employment. However, the objectives were largely missed, and as a result, the South became increasingly subsidized and state-dependent, incapable of generating private growth itself.[133]
The imbalance between North and South was reduced in the 1960s and 1970s through the construction of public works, the implementation of agrarian and scholastic reforms,[134] the expansion of industrialization and the improved living conditions of thepopulation. This convergence process was interrupted, however, in the 1980s. To date, the per capitaGDP of the South is just 58% of that of theCenter-North,[135] but this gap is mitigated by the fact that there thecost of living is around 10-15% lower on average (with even more differences between small towns and big cities) than that in the North of Italy.[136] In the South the unemployment rate is more than double (6.7% in the North against 14.9% in the South).[137] A study by Censis blames the pervasive presence ofcriminal organizations for the delay of Southern Italy, estimating an annual loss of wealth of 2.5% in the South in the period between 1981–2003 due to their presence, and that without them the per capita GDP of the South would have reached that of the North.[138]
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According to the last national agricultural census, there were 1.6 million farms in 2010 (−32.4% since 2000) covering 12,700,000 ha or 31,382,383 acres (63% of which are located inSouthern Italy).[141] The vast majority (99%) are family-operated and small, averaging only 8 ha (20 acres) in size.[141] Of the total surface area in agricultural use (forestry excluded), grain fields take up 31%,olive tree orchards 8.2%,vineyards 5.4%,citrus orchards 3.8%,sugar beets 1.7%, and horticulture 2.4%. The remainder is primarily dedicated to pastures (25.9%) and feed grains (11.6%).[141] The northern part of Italy produces primarily maize corn, rice,sugar beets,soybeans, meat, fruits anddairy products, while the South specializes in wheat, olive andcitrus fruits. Livestock includes 6 million head of cattle, 8.6 million head ofswine, 6.8 million head of sheep, and 0.9 million head of goats.[141] The total annual production of thefishing industry in Italy from capture andaquaculture, includingcrustaceans andmolluscs, is around 480,000 tons.
Italy is thelargest producer of wine in the world, and one of the leading producers ofolive oil, fruits (apples, olives, grapes, oranges, lemons, pears, apricots, hazelnuts, peaches, cherries, plums, strawberries, and kiwifruits), and vegetables (especially artichokes and tomatoes). The most famousItalian wines are theTuscanChianti and thePiedmonteseBarolo. Other famous wines areBarbaresco,Barbera d'Asti,Brunello di Montalcino,Frascati,Montepulciano d'Abruzzo,Morellino di Scansano,Amarone della Valpolicella DOCG and thesparkling winesFranciacorta andProsecco. Quality goods in which Italy specialises, particularly the already mentioned wines andregional cheeses, are often protected under the quality assurance labelsDOC/DOP. Thisgeographical indication certificate, which is attributed by the European Union, is considered important to avoid confusion with low-quality mass-producedersatz products.
In fact,Italian cuisine is one of the most popular and copied around the world.[142] The lack or total unavailability of some of its most characteristic ingredients outside of Italy, also and above all to falsifications (or food fraud), leads to the complete denaturalization of Italian ingredients.[143] This phenomenon, widespread in all continents, is better known asItalian Sounding, consisting in the use of words as well as images, colour combinations (theItalian tricolour), geographical references, brands evocative of Italy to promote and market agri-food products which in reality have nothing to do with Italian cuisine.[144]
Italy is the world's sixth-largestmanufacturing country.[41] Italy has a smaller number of global multinational corporations than other economies of comparable size, but it has a large number ofsmall and medium-sized enterprises, many of them grouped in clusters, which are the backbone of the Italian industry.[147] This results in a manufacturing sector often focused on the export ofniche market and luxury products, that is less capable of competing on quantity but is more capable of facing the competition of emerging economies based on lower labour costs, given the higher quality of its products.[148]
Theindustrial districts are regionalized: in the Northwest, there is a large modern group of industries, as in the so-called "industrial triangle" (Milan-Turin-Genoa), where there is an area of intensemachinery,automotive,aerospace production and shipbuilding; in the Northeast, an area that experienced social and economic development mostly around family-based firms, there are mostly small and medium enterprises of lower technology but high craftsmanship, specializing in machinery, clothing, leather products, footwear, furniture, textiles, machine tools, spare parts, home appliances, and jewellery. In central Italy, there are mostly small and medium-sized companies specializing in products such as textiles, leather, jewellery but also machinery.[147][149] According to a study carried out in 2015 by the Edison Foundation andConfindustria on the most industrialized provinces inEurope, of the five most industrialized provinces in Europe, three are Italian provinces.Brescia turns out to be the first European province for value added by industry, with an added value over 10 billioneuros.[150]
Theautomotive industry in Italy is a significant part of the manufacturing sector, with over 144,000 firms and almost 485,000 employed people in 2015,[151] and a contribution of 8.5% to ItalianGDP.[152] Italy'sautomotive industry is best known for its automobile designs and small city cars, sports and supercars. Italy is one of thesignificant automobile producers both inEurope and around the world. Today the Italian automotive industry is almost totally dominated byFiat Group (now included inStellantis corporation). As well as its own, predominantly mass market model range, Stellantis owns the mainstreamFiat brand, the upmarketAlfa Romeo andLancia brands, and the exoticMaserati brand. Luxury cars such asFerrari,Lamborghini, Maserati andDucati motorcycles are also made in the Northeast region of Emilia-Romagna. Italian cars have won the annualEuropean Car of the Year award several times (with Fiat winning more than any other manufacturer), and have also been awarded theWorld Car of the Year award.
In Italy,services represent the most important sector of the economy, both in terms of number of employees (67% of the total) and value-added (71%).[154] Furthermore, the sector is by far the most dynamic: over 51% of the more than 5,000,000 companies operating in Italy today belong to the services sector, and in this sector over 67% of new businesses are born.[155] Very important activities in Italy aretourism, trade, services to people and businesses (advanced tertiary).
In 2006 the main sectoral data are: for trade, there are 1,600,000 enterprises, equal to 26% of the Italian entrepreneurial fabric, and over 3,500,000 work units. Transport, communications, tourism and consumption outside the home, over 582,000 businesses, equal to 9.5% of the entrepreneurial fabric, almost 3,500,000 work units. Business services: 630,000 registered companies, equal to 10.3% of the entrepreneurial fabric, over 2,800,000 work units.[155] In 2004 the transport sector in Italy generated a turnover of about 119.4 billion euros, employing 935,700 persons in 153,700 enterprises.
Italian Bourse, based inMilan, is theItalianstock exchange. It manages and organises the domestic market, regulating procedures for admission and listing of companies and intermediaries and supervising disclosures for listed companies.[156] Following exchange privatisation in 1997, the Italian Bourse was established and became effective on 2 January 1998.[157] On 23 June 2007, the Italian Bourse became a subsidiary of theLondon Stock Exchange Group.[158] As of April 2018, overall capitalisation for listed companies on Borsa Italiana was worth €644.3 billion, representing 37.8% of ItalianGDP.[159]
Italy is thefourth most visited country, with a total of 57 million arrivals in 2023.[160] The total contribution of thetourism in Italy to GDP (including wider effects from investment, the supply chain and induced income impacts) was EUR162.7bn in 2014 (10.1% of GDP) and generated 1,082,000 jobs directly in 2014 (4.8% of total employment).[161] Factors of tourist interest in Italy are mainlyculture,cuisine,history,fashion,architecture,art, religious sites and routes, wedding tourism, naturalistic beauties, nightlife, underwater sites and spas.[162][163][164][165][166][167][168] Winter and summer tourism are present in many locations in theAlps and theApennines,[169] while seaside tourism is widespread in coastal locations on theMediterranean Sea.[170] Italy is the leading cruise tourism destination in the Mediterranean Sea.[171] Small, historical and artistic Italian villages are promoted through the associationI Borghi più belli d'Italia (literally "The Most Beautiful Villages of Italy").
The origins of modern banking can be traced to medieval and earlyRenaissance Italy, to the rich cities likeFlorence,Lucca,Siena, Venice andGenoa. TheBardi andPeruzzi families dominated banking in 14th-century Florence, establishing branches in many other parts of Europe.[172] One of the most famous Italian banks was theMedici Bank, set up byGiovanni di Bicci de' Medici in 1397.[173] The earliest known state deposit bank, theBank of Saint George, was founded in 1407 in Genoa,[174] whileBanca Monte dei Paschi di Siena, founded in 1472, is the world'soldest or second oldest bank in continuous operation, depending on the definition, and the third-largest Italian commercial and retail bank.[175] Today, among the financial services companies,UniCredit is one of the largest banks in Europe by capitalization andAssicurazioni Generali is second largest insurance group in the world by revenue afterAXA.
The following is a list of the main Italian banks and insurance groups ranked by total assets andgross premiums written.
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Italy consumed about 185Mtoe ofprimary energy in 2010.[178] This came mostly fromfossil fuels. Among the most used resources arepetroleum (mostly used for the transport sector),natural gas (used for electric energy production and heating),coal andrenewables. Electricity is produced mainly fromnatural gas, which accounts for the source of more than half of the total final electric energy produced. Another important source ishydroelectric power, which was practically the only source of electricity until 1960.
Eni, with operations in 79 countries, is considered one of the seven "Supermajor" oil companies in the world, and one of the world's largest industrial companies.[179] TheVal d'Agri area,Basilicata, hosts the largestonshorehydrocarbon field in Europe.[180] Moderate natural gas reserves, mainly in thePo Valley and offshoreAdriatic Sea, have been discovered in recent years and constitute the country's most important mineral resource.
Most raw materials needed for manufacturing and more than 80% of the country's energy sources are imported (99.7% of the solid fuels demand, 92.5% of oil, 91.2% of natural gas and 13% of electricity).[181][182] Due to its reliance on imports, Italians pay approximately 45% more than the EU average for electricity.[183]
In the last decade, Italy has become one of the world'slargest producers of renewable energy, ranking as the second largest producer in the European Union and the ninth in the world.Wind power,hydroelectricity, andgeothermal power are also importantsources of electricity in the country. Italy was thefirst country to exploit geothermal energy to produce electricity.[184] The first Italian geothermal power plant was built inTuscany, which is where all currently active geothermal plants in Italy are located. In 2014 the geothermal production was 5.92 TWh.[185]
Solar energy production alone accounted for almost 9% of the total electric production in the country in 2014, making Italy the country with the highest contribution from solar energy in the world.[177] TheMontalto di Castro Photovoltaic Power Station, completed in 2010, is the largest photovoltaic power station in Italy with 85 MW. Other examples of large PV plants in Italy are San Bellino (70.6 MW), Cellino san Marco (42.7 MW) and Sant’ Alberto (34.6 MW).[186] Italy was also the first country to exploit geothermal energy to produce electricity.[184]
Renewable sources account for 27.5% of all electricity produced in Italy, with hydro alone reaching 12.6%, followed by solar at 5.7%, wind at 4.1%, bioenergy at 3.5%, and geothermal at 1.6%.[187] The rest of the national demand is covered by fossil fuels (38.2% natural gas, 13% coal, 8.4% oil) and by imports.[187]
Italy has managed four nuclear reactors until the 1980s, but in 1987, after theChernobyl disaster, a large majority of Italians passed areferendum opting for phasing outnuclear power in Italy. The government responded by closing existing nuclear power plants and stopping work on projects underway, continuing to work to the nuclear energy program abroad. The national power companyEnel operates seven nuclear reactors in Spain (throughEndesa) and four inSlovakia (throughSlovenské elektrárne),[188] and in 2005 made an agreement withÉlectricité de France for a nuclear reactor in France.[183] With these agreements, Italy has managed to access nuclear power and direct involvement in design, construction, and operation of the plants without placing reactors on Italian territory.[183]
In the early 1970s Italy was a major producer ofpyrites (from the TuscanMaremma),asbestos (from theBalangero mines),fluorite (found inSicily), and salt. At the same time, it was self-sufficient in aluminium (fromGargano),sulphur (from Sicily), lead, andzinc (fromSardinia).[189] By the beginning of the 1990s, however, it had lost all its world-ranking positions and was no longer self-sufficient in those resources. There are no substantial deposits of iron, coal, or oil. Italy is one of the world's leading producers ofpumice,pozzolana, andfeldspar.[189] Another mineral resource for which Italy is well-known ismarble, especially the world-famous whiteCarrara marble from theMassa and Carrara quarries inTuscany.
Regarding the national road network, in 2002 there were 668,721 km (415,524 mi) of serviceableroads in Italy, including 6,487 km (4,031 mi) of motorways, state-owned but privately operated byAtlantia. In 2005, about 34,667,000passenger cars (590 cars per 1,000 people) and 4,015,000 goods vehicles circulated on the national road network.[192]
Italy was the first country in the world to buildmotorways, the so-calledautostrade, reserved for fast traffic and for motor vehicles only.[190][191] TheAutostrada dei Laghi ("Lakes Motorway"), the first built in the world, connectingMilan toLake Como andLake Maggiore, and now parts of theA8 andA9 motorways, was devised byPiero Puricelli and was inaugurated in 1924.[191] He received the first authorization to build a public-utility fast road in 1921. By the end of the 1930s, over 400 kilometres of multi- and dual-single-lane motorways were constructed throughout Italy, linking cities and rural towns. Italy is one of the countries with the most vehicles per capita, with 690 per 1000 people in 2010.[193]
Thenational railway network is also extensive, especially in the north, totalizing 16,862 km of which 69% are electrified and on which 4,937 locomotives and railcars circulate. It is the12th largest in the world, and is operated by state-ownedFerrovie dello Stato, while therail tracks and infrastructure are managed byRete Ferroviaria Italiana. While a number of private railroads exist and provide mostlycommuter-type services, the national railway also provides sophisticatedhigh-speed rail service that joins the major cities. TheFlorence–Rome high-speed railway was the first high-speed line opened in Europe when more than half of it opened in 1977. In 1991 theTAV was created for the planning and construction ofhigh-speed rail lines along Italy's most important and saturated transport routes (Milan-Rome-Naples and Turin-Milan-Venice). High-speed trains includeETR-class trains, with theFrecciarossa 1000 reaching 400 km/h. Higher-speed trains are divided into three categories:Frecciarossa (English:red arrow) trains operate at a maximum speed of 300 km/h on dedicated high-speed tracks;Frecciargento (English:silver arrow) trains operate at a maximum speed of 250 km/h on both high-speed and mainline tracks; andFrecciabianca (English:white arrow) trains operate on high-speed regional lines at a maximum speed of 200 km/h. Italy has 11 rail border crossings over the Alpine mountains with its neighbouring countries.
Since October 2021, Italy'sflag carrier airline isITA Airways, which took over the brand, the IATA ticketing code, and many assets belonging to the former flag carrierAlitalia, after its bankruptcy.[197] ITA Airways serves 44 destinations (as of October 2021[update]) and also operates the former Alitalia regional subsidiary,Alitalia CityLiner.[198] The country also hasregional airlines (such asAir Dolomiti), low-cost carriers, and Charter and leisure carriers (includingNeos,Blue Panorama Airlines andPoste Air Cargo). Major Italian cargo operators are Alitalia Cargo andCargolux Italia. Italy is the fifth in Europe by number of passengers by air transport, with about 148 million passengers or about 10% of the European total in 2011.[199] There are approximately130 airports in Italy, of which 99 have paved runways (including the twohubs ofLeonardo Da Vinci International in Rome andMalpensa International in Milan).
Italy has been the final destination of theSilk Road for many centuries. In particular, the construction of theSuez Canal intensified sea trade withEast Africa andAsia from the 19th century. Since the end of the Cold War and increasing European integration, trade relations, which were often interrupted in the 20th century, have intensified again. In 2004 there were 43 major seaports including thePort of Genoa, the country's largest and thethird busiest by cargo tonnage in theMediterranean Sea. Due to the increasing importance of the maritime Silk Road with its connections to Asia and East Africa, the Italian ports forCentral andEastern Europe have become important in recent years. In addition, the trade in goods is shifting from the European northern ports to the ports of the Mediterranean Sea due to the considerable time savings and environmental protection. In particular, the deep water port ofTrieste in the northernmost part of the Mediterranean Sea is the target of Italian, Asian and European investments.[200][201][202][203][204][205] The national inland waterway network comprises 1,477 km (918 mi) of navigable rivers and channels. In 2007 Italy maintained a civilian air fleet of about 389,000 units and a merchant fleet of 581 ships.[206]
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In 2015, poverty in Italy hit the highest levels in the previous 10 years. The level of absolute poverty for a two-person family was €1050.95/month. The poverty line per capita changed by region from €552.39/month to €819.13/month. The number of those in absolute poverty rose nearly an entire per cent in 2015, from 6.8% in 2014 to 7.6% in 2015.[207] InSouthern Italy the numbers are even higher, with 10% living in absolute poverty, up from 9 per cent in 2014.Northern Italy is better off at 6.7%, but this is still an increase from 5.7% in 2014.[207]
The national statistics reporting agency, ISTAT, defines absolute poverty as those who can not buy goods and services which they need to survive. In 2015, the proportion of poor households in relative poverty also increased to 13.7 from 12.9 in 2014. ISTAT defines relative poverty as people whose disposable income is less than around half the national average. The unemployment rate in February 2016 remained at 11.7%, which has been the same for almost a year, but even having a job does not guarantee freedom from poverty.[208]
Those who have at least one family member employed still suffer from 6.1% to 11.7% poverty, the higher number being for those who have factory jobs. The numbers are even higher for the younger generations because their unemployment rate is over 40%. Also, children are hit hard. In 2014, 32% of those aged 0–17 were at risk of poverty or social exclusion, which is one child out of three. While in the north the poverty rate is about the same as that of France and Germany, in the south it is almost double that figure. In the last ISTAT report, poverty is in decline.[209][needs update] According to the 2022ISTAT Poverty Report, 2.18 million households and 5.6 million people live in absolute poverty in Italy.[210]
According toEurostat, by 2023, 63% of Italian households will struggle to make ends meet, making it one of the European countries with the most widespread economic difficulties, surpassingFrance,Poland,Spain andPortugal. The European average is 45.5%.[211]
The average annual gross salary in Italy was €41,646 ($44,893) in 2022,[212] placing the country at the twenty-first position in the OECD area, with lower wages compared to the EU average. Many Italians still face significant challenges in meeting basic living expenses due to high living costs and regional economic disparities.
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