Italy’s economic freedom score is 63.8, making its economy the 74th freest in the 2020 Index. In 2019, agriculture contributed around 1.93 percent to … After having experienced the deepest recession since the second world war, in 2021 the Italian economy will begin a fragile economic recovery, but a return to pre-crisis levels is unlikely before 2024. The new coalition will be less confrontational toward EU rules on migration and fiscal policy. See how Italy compares to another country using any of the measures in the Index. The economy of Italy is based on capitalism, which means that privately-owned organizations determine which products they will produce without strict government regulation. Italy also has a sizable underground economy… The services sector accounts for almost three quarters of total GDP and employs around 65% … Other taxes include value-added and inheritance taxes. Italy is a founding member of the European Union, the Eurozone, the OECD, the G7 and the G20; it is the tenth-largest exporter in the world, with $632 billion exported in 2019. All maps, graphics, flags, photos and original descriptions © 2020 worldatlas.com, The World’s Largest Oil Reserves By Country, Top Cotton Producing Countries In The World. In 2018, the government introduced the so-called Dignity Decree, which includes incentives to hire workers under 35 years old, sets limits on short-term contracts, and makes it costlier to fire workers. The economy of Italy is the third-largest national economy in the European Union, the eighth-largest by nominal GDP in the world, and the 12th-largest by GDP (PPP). This country exported $509 billion worth of goods in 2014, making it the 8th largest export economy in the world. The top personal income tax rate is 43 percent, and the top corporate tax rate is 27.5 percent. The Gross Domestic Product (GDP) in Italy was worth 2001.24 billion US dollars in 2019, according to official data from the World Bank and projections from Trading Economics. The European Commission said last week that the government’s flagship measures — an early retirement scheme and a citizens’ income (a monthly allowance for certain jobseekers) — failed to trigger the growth the League-5Stars coalition had envisaged. The residents in this country generally enjoy a high quality of life per the Human Development Index. Although the judiciary is generally independent, judicial corruption and political interference persist. The looming storm is all down to Italy's mounting debt levels. Italy’s economy comprises a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, with a legacy of unemployment and underdevelopment. The Italian economy has been mired in the bottom ranks of the moderately free category for most of the years since the inception of the Index in 1995, dragged down by one consistently very low-scoring indicator: government spending. In brief. Italy is well known for its business, agriculture, and luxury automobile sectors. Italy's economy returned to growth in the first quarter of the year, pulling clear of its third recession in a decade, while the unemployment rate receded in March, data showed on Tuesday. Some of its major exports include packaged medicines ($22.9 billion), refined petroleum ($16.7 billion), vehicle parts ($14.3 billion), cars ($12.1 billion), and valves ($9.3 billion). A recession in Italy and weak growth across Europe could force the European Central Bank to rule out interest rate hikes this year. The plan also includes operating at a deficit of 2.3% of the GDP. Economic forecast for Italy The Commission publishes a full set of macroeconomic forecasts for the EU and its Member States in spring (May) and autumn (November) and publishes interim forecasts updating GDP and inflation figures in winter (February) and summer (July). Winter is coming, and with it what is expected to be a full-blown economic catastrophe. Today, this country carries a high debt and has a significant gap between the rich and the poor. Public debt is equivalent to 132.1 percent of GDP. Italy entered a recession in the second half of 2018, making it almost certain that Rome will miss its 2019 fiscal targets. By . Italy is ranked 37th among 45 countries in the Europe region, and its overall score is well below the regional average and slightly above the world average. The overall tax burden equals 42.4 percent of total domestic income. However, the recovery has recently weakened and Italy continues to suffer from long-standing social and economic problems. Italy’s economy returned to modest growth in late 2014 for the first time since 2011. It includes the events that follow the announcement of the Minister of the Interior and leader of the League, Matteo Salvini, that he would revoke League's support of the cabinet and ask the President of the Republic to call a snap election. Country enjoys its second-lowest borrowing costs on record for a 30-year bond. By Amber Pariona on July 29 2019 in Economics. OECD Economic Surveys: Italy 2019 Publication (2019) International Trade by Commodity Statistics, Volume 2019 Issue 3 Publication (2019) Strengthening Active Labour Market Policies in Italy Publication (2019) Italy has a workforce of 25.7 million and an unemployment rate of 11.4%. Read more about Italy Economy. Economic Indicators for Italy including actual values, historical data charts, an economic calendar, time-series statistics, business news, long term forecasts and short-term predictions for Italy economy. 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