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