Italian industries are known for high quality and craftsmanship. The industry in Italy is thus dominated by automobiles and textiles. The country’s industry sector is also reinforced by a strong workforce comprising 24.95 million people.
Italy Industry Sectors
The Italian industry sector is characterized by well-developed large corporations as well as smaller, family-run industries. However, the lack of raw materials poses a big challenge to the economy and is supplied through imports.
Italian industries include tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear and ceramics shrunk 12 percent in 2010.
In 2010, the Italian industry sector contributed 26.7 percent to GDP while agriculture accounted for 2 percent and services, 71.3 percent. The biggest sector; services, employs 30.7 percent of the workforce.
Tourism is a main sector for Italy and attracts foreign exchange plus creates jobs. However, all industries suffered smaller growth rates during the recession years and are still struggling to recover.
Italy Industry Sectors: FDI
Italy’s industrial sector attracts a good amount of FDI. In 2010, the total amount of FDI was $386.7 billion, up from $376.6 billion in the previous year. Abroad, Italy’s FDI totaled $610.5 billion in 2010, increasing from the previous year when it was $565.3 billion.
A challenge for Italy is to increase its energy production, an area where the country is not self-sufficient. For an economy that gets tremendous support from the industrial sector, it’s essential to achieve self sufficiency in the energy sector. In 2010, Italy manufactured 289.7 billion kWh while consuming 315 billion kWh. To plug the gap, the country had to import energy, tilting the balance of the trade.