The economy of Italy. This is Italy, once the
seat of the Roman empire, which now has a surprisingly robust yet volatile economy.
Italy's economy followed a path very similar to that of Germany, albeit with a little more
flamboyance, and has led them to where they are today. Are you interested in learning more about
the Italian economy? Following World War II, the Italian economy was one of the weakest in Europe,
but it has since grown to be one of the most powerful. Its strengths include the
metallurgical and engineering industries, while its weaknesses include a lack of raw materials
and energy sources. More than four-fifths of Italy's energy needs are met by imports.
Nonetheless, the chemical industry thrived, and textiles are one of Italy's largest industries.
A strong entrepreneurial bias, combined with liberal trade policies following the war,
enabled manufacturing exports to grow at a phenomenal rate, but a cumbersome bureaucracy
and insufficient planning hampered an even economic development across the country.
Services, particularly tourism, play an important role as well. In order to achieve balance with the
EU nations, Italy brought its high inflation under control and implemented more conservative fiscal
policies, including sweeping privatization, at the end of the second century. Before we continue,
I'd like to welcome you all and ask that you please like, share, subscribe, and turn on your
notifications for more upcoming videos. Although Italy is not self-sufficient in agriculture,
certain commodities play a significant role in the export market. Notably, the country is a world
leader in the production of olive oil, as well as a major exporter of rice, tomatoes, and wine.
Cattle rearing, on the other hand, is less developed; meat and dairy products are imported.
Public and private sectors. The Italian economy is mixed, and until the early
1990s, the state owned a significant number of businesses. The economy was organized as a pyramid
at the time, with a holding company at the top, a middle layer of financial holding companies
divided by sector of activity, and a mass of companies operating in various sectors ranging
from banking, expressway construction, media, and telecommunications to manufacturing, engineering,
and shipbuilding. The Institute for Industrial Reconstruction, for example, was a holding company
that regulated public industries and banking and was founded in 1933 and closed in 2000. Many of
those businesses were owned in part by private shareholders and traded on the stock exchange.
By the 1980s, efforts had been made to increase private participation in a number of companies.
The most notable examples were mediobanca SPA, Italy's leading merchant bank with stakes in
major industrial concerns, Alitalia, the national airline, which declared bankruptcy in 2008 before
being sold to a private investment group, and telecom Italia SpA, which was formed in 1994 by
the merger of five state-owned telecommunications companies. Many other banks were also partially
privatized as a result of the 1990 Banking Act. In 1992, four of the major state-controlled holding
companies were converted into public limited corporations, kicking off a broad privatization
program. IRI, the National Hydrocarbons Agency, the National Electrical Energy Fund, and the State
Insurance Fund are among these four. Other major agencies include the Azienda Nazionale Autonoma
della Strada Stately, which is in charge of approximately 190,000 miles of the road network,
and the Ente Ferrovie dello Stato, which is in charge of the majority of the rail network.
Historically, the private sector was characterized by a plethora of small businesses, many of which
were family-run and employed few or no workers outside the family. Businesses with fewer than
50 employees still accounted for more than half of all firms in the early twenty-first century,
reflecting a trend that saw a decline in large production units and an increase in smaller,
more-specialized ones. This trend was most noticeable in the automobile industry,
textiles, electrical goods, and agricultural, industrial, and office equipment.
Postwar economic development One of the country's major success stories
was the development of the Italian economy after World War II. Between 1950 and 1963,
economic reconstruction was followed by unprecedented economic growth. During this period,
GDP increased by an average of 5.9 percent per year, reaching a peak of 8.3 percent in 1961.
From 1958 to 1963, Italy experienced an economic miracle. During this time, industrial output
increased by more than 10% per year, a rate only surpassed by Japan and West Germany.
The country had nearly full employment, and investment reached 27 percent of GDP in 1963. The
decision to promote free market policies and open up international trade contributed to the success.
Italy was an early supporter of European integration, which benefited the Italian
manufacturing industry, which expanded dramatically during this time period.
In a matter of years, certain products, such as Olivetti typewriters and Fiat automobiles,
dominated European and global markets. The economy slowed after 1963 and entered a slump following
the 1973 increase in petroleum prices. However, by the late 1980s, it was once again thriving.
Later economic trends The decision to promote free market policies
and open up international trade contributed to the success. The economy slowed after 1963 and entered
a slump following the 1973 increase in petroleum prices. However, by the late 1980s, it was once
again thriving. The scala mobile was gradually dismantled (and abolished in 1992) under pressure
from the employers' association, the Confederation of Industries, beginning with a decree in 1984
that imposed a payment ceiling. Annual GDP growth rates in the 1990s were very low. In response to a
healthy international economy and steps taken to improve the Italian financial system, including
reduced public spending and increased taxation, the Italian government reduced public spending and
increased taxation in 2000. The GDP increased by 3%, the largest increase since 1988 at the time,
but the recovery would not last indefinitely. The global recession that began in 2007-2008 reached
Italy in 2009. The economy stalled, GDP fell, and unemployment surpassed 10%. The chronic insecurity
of Prime Minister Silvio Berlusconi's government heightened concern about Italy's public debt,
and the ratings agency, poor and moody, downgraded the country's credit in w011. Italy was grouped
into the acronym PIIGS, which stood for Portugal, Ireland, Italy, Greece, and Spain, and was used to
describe the countries that were most vulnerable to the eurozone debt crisis. As Italy's euro-zone
partners built ever-tougher financial barriers to prevent contagion, the technocratic government led
by Mario Monti, who became Prime Minister in 2011, implemented a series of austerity measures to
reduce Italy's deficit. Although Monti's decisive action was credited with averting a financial
meltdown, he only served as Prime Minister for a year and a half. Matteo Renzi, his successor,
led Italy out of recession in 2015, but resigned in December 2016 following a constitutional
referendum on government reform. Paolo Gentiloni took over as caretaker prime minister and oversaw
a period of modest growth that was tempered by uncertainty about the government's stability.
Agriculture, forestry, and fishing. Agriculture, like other sectors of
the Italian economy, has historically been marked by a number of regional and social inequalities.
Until the land reform act of 1950, the majority of Italy's cultivable land was owned and managed
by a few leisure noblemen, while the majority of agricultural workers struggled under harsh
conditions as wage laborers or owned pitiful plots of land, too small for self-sufficiency.
Agriculture workers had few rights, and unemployment was high, particularly in Calabria,
which provided impetus for land reform. Large tracts of land were redistributed among the
landless peasantry, absorbing greater amounts of labor and encouraging more efficient land use.
Field crops. Benito Mussolini's government
aimed to make Italy self-sufficient in wheat production from 19 22 to 19 43, but land dedicated
to wheat cultivation has shrunk from more than 12 million acres to just over 5 million acres since
then (about 50,000 to 20,000 square kilometers). Hard wheat, which is used to make pasta,
is traditionally grown in the south, whereas soft wheat, which is used to make bread, biscuits, and
pizza crust, is grown in the northern lowlands. Because of improved mechanization techniques and
more suitable terrain, yields in the north can be up to three times those in the south.
Italy is a significant exporter of rice, which is grown primarily on the Po plain. Corn (maize) is
also grown in that region. Tomatoes are the most important field crop for both domestic and export
markets. That crop is specialized in Naples and Emilia-Romagna. By the early twenty-first century,
the area dedicated to tomato cultivation had more than doubled, and production had quadrupled due
to improved production techniques. It also has tree crops; olives and grapes are two of Italy's
most profitable agricultural exports. The arid conditions of Puglia, Sicily, and Calabria are
ideal for olive production, with the oil content being enhanced by the long, dry summers. However,
because the olives are susceptible to late frosts, the output is erratic. Although Italy is
the world's largest exporter of olive oil, Spain dominates the more lucrative table olive sector.
While olives were traditionally grown alongside other crops or livestock, nearly half of the
olive-producing land now excludes other types of cultivation, indicating the decline of traditional
peasant farming methods. Wine is grown in every region of Italy and, like olive oil,
has a positive trade balance. However, competition is heating up, with the burgeoning eastern
European market undercutting western prices. Much of the heavier wine from the south is used to make
vermouth or marsala, whereas the best-known wines from the north are Soave, Valpolicella, Barolo,
and Asti. Furthermore, Sicily accounts for roughly three-fifths of Italy's citrus fruit production,
with the majority of the remainder grown in sheltered and irrigated lowlands in Calabria and
Campania. Deciduous fruits, on the other hand, are very common. Campania is famous for its cherries,
apricots, nectarine, and hazelnuts, whereas Emilia-Romagna is known for its peaches,
plums, and pears. Sicily and Puglia are well-known for their almond production.
PASTURES Pastureland accounts
for roughly one-sixth of all land in use. Meat production in Italy has historically been low. In
the early twenty-first century, cattle production was relatively stagnant, with much of the industry
devoted to fattening calves imported from France. The distribution of farms varies significantly
across the country. While bovine, swine, and aviculturist farms are more common in the north,
ovine farms are more common in the south. Domestic consumption is met by butter production, and some
cheeses, such as Gorgonzola and Parmesan, are made for export. Buffalo farming is a popular pastime
in Tuscany and Campania, where their milk is used to make mozzarella cheese. Goat milk production
is still modest, though it has become more profitable as a luxury item for the urban market.
Forestry Overexploitation of Italian forests has occurred
in the past, first by the Romans in antiquity and then again in the nineteenth century, when much
wood was required for the construction of mine shafts and railway sleepers. Forest and other
woodland cover less than one-third of the land. Strenuous efforts to reforest specific areas are
gradually yielding positive results; for example, by the end of the twentieth century, roundwood
production had nearly returned to the high levels it had maintained in the 19 60s, after dropping by
40% in the mid-19 70s.The vast majority of Italy's forest area is made up of broad-leaved trees,
with conifers accounting for roughly one-fifth of the total. With the exception of Puglia, Sicily,
and Sardinia, broad-leaved forests are fairly widespread throughout the country. Conifers are
mostly found in the Alpine foothills, particularly in the Trentino-Alto Adige region near the
Austrian border. The northern Apennines and the Calabrian Sila are densely forested with chestnut
trees. The North Italian Plain, Puglia, and the southern half of Sicily are devoid of forest.
Fishing. Italian fish production more than
doubled in the last four decades of the twentieth century, but it fell precipitously in the early
twenty-first century. Totals for wild-captured fish, primarily from the Mediterranean and the
Black Sea, fell by nearly half between 1980 and 2010. Aquaculture, which included both marine
and freshwater fish farms, played an increasingly important role in the fishing industry.
Imports accounted for the majority of domestic consumption.This country also
has resources and power, mineral production, iron and coal, energy, Italian manufacturing,
mining and quarrying development of heavy industry, light manufacturing, and construction.
Trade of Italy. Italy has a long trading history.
The country occupies a strategic position in the Mediterranean Sea, enhancing its trading
potential not only with Eastern Europe, but also with North Africa and the Middle East. Italy has
long maintained active relations with countries in Eastern Europe, Libya, and the Palestinian people.
Even during times of great political tension, such as the cold war and the 19 91 Persian Gulf war,
these ties have been maintained. Membership in the Ec since 19 57 has increased Italy's
trade potential even further, resulting in rapid economic growth. However, the economy has been
plagued by an ever-expanding trade deficit since that time. Between 19 85 and 19 89, the United
States was Italy's only trading partner with which it did not run a deficit. Italy regained its
positive balance in the mid-19 90s. More than half of Italy's transactions are with other EU members.
Other major trading partners include the US, Russia, China, and members of the Organization
of Petroleum Exporting Countries. Tourism.
Italy was a popular tourist destination, attracting more than 40 million foreign
visitors per year in the early twenty-first century. In contrast, less than one-fifth
of Italians vacation abroad. The Italian tourist industry experienced a decline beginning in 1987,
including a slump during the Persian Gulf war and the global recession, but it recovered in the
1990s, with increases in the number of overseas and domestic tourists. IFurthermore, the Roman
Catholic Church's Jubilee celebrations in 2000 to mark the beginning of its third millennium
drew millions of tourists to Rome and its enclave, Vatican City, the seat of the church. Pope Francis
declared 2016 the Extraordinary Jubilee of Mercy, attracting even more pilgrims to the Vatican.
Grace Media brought you an overview of Italy's economy. Many stories remain untold,
but with time, we will learn everything there is to know about this amazing country. I'm sure
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