Italy Economic Forecast

Italy’s industrial economy is a diverse mixture of private companies; developed industrial clusters in the north and a welfare dependant, less developed and underemployed southern region that focuses on agricultural, agrarian, fisheries, and farming.

Italy’s industrial economy is a diverse mixture of private companies; developed industrial clusters in the north and a welfare dependant, less developed and underemployed southern region that focuses on agricultural, agrarian, fisheries, and farming.

Italy’s competitive advantage lies in its high quality products, produced by both small and medium-sized companies. Consumers around the world prefer and demand Italian made goods. While the industrial sector accounts for the majority of employment and income in Italy, other opportunities lie in construction, agriculture, fisheries, farming, and services.

However, high taxes and unemployment are areas of concern for the Italian economy, as well as the population’s dependence on welfare.  

Italy GDP Forecast

In 2010, Italy’s GDP was US$ 2,036.69 billion, growing at a mere 1 percent, and down 3.85 percent in 2009 from US$ 2,118.26 billion. It’s expected to grow 2.7 percent in 2011 to US$ 2,054.90 Billion, and to US$ 2,288.87 Billion in 2015 – growing a steady 1-2 percent per year between 2010-2015.

Italy’s GDP is surpassed by its public debt which accounts for more than 100 percent of the GDP. The country’s financial deficit, this is approximately 3 percent of the GDP, arising from pressure to stimulate the economy and the rising costs of servicing the debt.

Italy is also one of the most developed countries in the world, with a high standard of living. The GDP per capita for Italy is much higher than the average for other countries in the European Union.

Italy Unemployment Forecast

Italy has a total population of 60.206 Million as of 2010, 8.7 percent of which is unemployed. 

Unemployment is expected to drop to 8.6 percent in 2011, and further to 7.4 percent by 2015. According to the most recent figures, 4.2 percent of the labor force is employed in agriculture, 30.7 percent in industries and 65.1 percent in services.

Italy Inflation Rate & Current Account Balance Forecast

In 2010, Italy’s inflation rate was 1.741 percent, and expected to rise to 1.69 percent more in 2011 – reaching 2 percent in 2015. Italy’s current account balance for 2010 was US$ -58.272 Billion, decreasing 13.22 percent from the previous year, and expected to decrease further to US$ -55.532 Billion in 2015.