Italy » Introduction

 

Italy has come a long way from having an agricultural based economy to now being an industrial state. Services sector of Italy make up 69 percent of the economy today. Italy’s economy saw real change and developed rapidly after the end of World War ll.  It today ranks as world’s fifth largest industrial economy and has the credit of being a member of the Group of Eight (G-8) industrialized nations, member of the European Union and the Organization for Economic Cooperation and Development (OECD). As Italy has Euro zone membership it has to keep its budget deficit below 3% which it is finding hard to manage.

 

Natural resources of Italy are limited and it is mainly small businesses that have contributed positively to the Italian economy. These businesses make up the backbone of Italy’s economy and are mostly family owned. The famous brand names in fashion to automotive industries have all been family businesses.

The north of Italy is more prosperous as compared to southern Italy where the farmers suffer from lack of production and distribution networks. Milan is the wealthiest city in the European Union. Unemployment rate in Italy is high in the southern parts and low in the north. Southern Italy produces fruits like olives and tomatoes while Northern Italy grows rice, wheat and other grains. Rice, tomatoes are major exports of Italy.  Another most important and well-known production of Italy is wine. Many areas in Italy grow grapes making Italy the largest producers of wine in the world. The Mediterranean climate of the country allows growth of variety of products. The North of Italy has diverse industries and is well known for fashionable designs and quality products be it clothes, shoes, perfumes and furniture. Other manufacturing includes automobiles, computers and electronic equipment.

Northern Italy also has many popular tourist areas, such as Rome, Venice and Florence making the tourist industry strength of Italy’s economy.