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Economy of Italy

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75-554: The economy of Italy is a highly developed social market economy . It is the third-largest national economy in the European Union , the second-largest manufacturing industry in Europe (7th-largest in the world), the 8th-largest economy in the world by nominal GDP , and the 11th-largest by GDP (PPP) . Italy is a developed country with a high nominal per capita income globally, and its advanced diversified economy ranks among

150-473: A 7 per cent level where Italy is thought to lose access to financial markets. According to Eurostat , in 2015 the Italian government debt stood at 128% of GDP, ranking as the second biggest debt ratio after Greece (with 175%). However, the biggest chunk of Italian public debt is owned by Italian nationals and relatively high levels of private savings and low levels of private indebtedness are seen as making it

225-632: A COVID-19 emergency funding, waiting for the approval of the E.U. response to the outbreak . Eventually, in July 2020, the European Council approved the 750 billion € Next Generation EU fund, of which €209 billion will go to Italy. Beginning in 2022, after the COVID-19 pandemic, Italy restarted with a resilient economy which nonetheless had to face the global energy crisis of 2021-2023 , involving an increase in gas and other energy prices due to

300-554: A brief recovery at the end of the 1990s, high tax rates and red tape caused the country to stagnate between 2000 and 2008. Italy was among the countries hit hardest by the Great Recession of 2008–2009 and the subsequent European debt crisis . The national economy shrunk by 6.76% during the whole period, totaling seven-quarters of recession. In November 2011 the Italian bond yield was 6.74 per cent for 10-year bonds, nearing

375-689: A coinage point of view: the medieval Florentine florin , one of the most used coinage types in European history and one of the most important coins in Western history, was struck in Florence in the 13th century , while the Venetian sequin , minted from 1284 to 1797, was the most prestigious gold coin in circulation in the commercial centers of the Mediterranean Sea . Despite the fact that

450-483: A geopolitical scenario that was significantly deteriorating with the exacerbation of ongoing war conflicts. Strategic assets are better protected, in particular the defense sector . Furthermore, the implementation of the PNRR plan, which must be completed by 2026, has brought benefits to many economic sectors. Italy has a long history of different coinage types , which spans thousands of years. Italy has been influential at

525-662: A group of officials from major creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries. 15 countries in Europe: three countries in the Americas: three countries in Asia: one country in Oceania: Comparative table of countries with a "very high" human development (0.800 or higher), according to UNDP ; "advanced" economies, according to

600-413: A highly efficient and strong social security system , which comprises roughly 24.4% of GDP . Italy is the world's seventh-largest manufacturing country , characterised by a smaller number of global multinational corporations than other economies of comparable size and many dynamic small and medium-sized enterprises , notoriously clustered in several industrial districts , which are the backbone of

675-567: A second, export-led "economic miracle", based on small and medium-sized enterprises , producing clothing, leather products, shoes, furniture, textiles, jewellery, and machine tools. As a result of this rapid expansion, in 1987 Italy overtook the UK's economy (an event known as il sorpasso ), becoming the fourth richest nation in the world, after the US, Japan and West Germany . The Milan stock exchange increased its market capitalization more than fivefold in

750-514: A terrible cost: by the end of the war, Italy had lost 700,000 soldiers and had a ballooning sovereign debt amounting to billions of lira . Italy emerged from World War I in a poor and weakened condition. The National Fascist Party of Benito Mussolini came to power in 1922, at the end of a period of social unrest. However, once Mussolini acquired a firmer hold of power, laissez-faire and free trade were progressively abandoned in favour of government intervention and protectionism . In 1929, Italy

825-454: A useful measurement. The formula used to calculate annual growth rate uses the previous year as a base. Over longer periods of time, compound annual growth rate (CAGR) is generally an acceptable metric for average growth rates. Perceptions of the success or failure of many enterprises and businesses are based on assessments of their growth. Measurements of year-on-year growth, however, are complicated by two simple factors: "Percentage growth

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900-533: A value of 0.29 grams of gold or 4.5 grams of silver. Since Italy has been for centuries divided into many historic states , they all had different coinage systems, but when the country became unified in 1861, the Italian lira came into place, and was used until 2002. The term originates from libra , the largest unit of the Carolingian monetary system used in Western Europe and elsewhere from

975-600: A very high (HDI) rating. The index, however, does not take into account several factors, such as the net wealth per capita or the relative quality of goods in a country. This situation tends to lower the ranking of some of the most advanced countries, such as the G7 members and others. According to the United Nations Statistics Division : There is no established convention for the designation of "developed" and "developing" countries or areas in

1050-418: Is Services with 654,065 companies followed by Retail Trade and Finance, Insurance, and Real Estate with 519,448 and 348,881 companies respectively. Italy has over 1.4 million people with a net wealth greater than $ 1 million, a total national wealth of $ 11.857 trillion, and represents the 5th largest cumulative net wealth globally (it accounts for 4.92% of the net wealth in the world). According to

1125-471: Is hard to define. The first industrialized country was the United Kingdom , followed by Belgium . Later it spread further to Germany , United States , France and other Western European countries. According to some economists such as Jeffrey Sachs , however, the current divide between the developed and developing world is largely a phenomenon of the 20th century. Mathis Wackernagel calls

1200-524: Is highly represented in Southern Italy, while it becomes less intense as one moves north. In real economic conditions, Southern Italy almost matches Central Italy's level. The Italian Renaissance was remarkable in economic development. Venice and Genoa were the trade pioneers, first as maritime republics and then as regional states, followed by Milan , Florence , and the rest of northern Italy. Reasons for their early development are for example

1275-592: Is the central plank of year-on-year analysis. Dividing the results for the current period by the results for the prior period will yield a comparative figure. Subtracting one from the other will highlight the increase or decrease between periods. When evaluating the comparatives, one might say that results in Year 2 were, for example, 110% of those in Year 1. To convert this figure to a growth rate, one need only subtract 100%. The periods considered are often years, but any time-frame can be chosen." The first step of this process

1350-652: Is the income per capita; countries with the high gross domestic product (GDP) per capita would thus be described as developed countries. Another economic criterion is industrialisation ; countries in which the tertiary and quaternary sectors of industry dominate would thus be described as developed. More recently, another measure, the Human Development Index (HDI), which combines an economic measure, national income, with other measures, indices for life expectancy and education has become prominent. This criterion would define developed countries as those with

1425-508: Is the largest hub for luxury goods in Europe and the third-largest luxury hub globally. Italy has a strong cooperative sector, with the largest share of the population (4.5%) employed by a cooperative in the EU. Despite these important achievements, the country's economy today suffers from few structural and non-structural problems. Annual growth rates have often been below the EU average. Italy

1500-535: The Credit Suisse 's Global Wealth Databook 2013, the median wealth per adult is $ 138,653 (5th in the world), while according to the Allianz 's Global Wealth Report 2013, the net financial wealth per capita is €45,770 (13th in the world). The following top 10 list of Italian billionaires is based on an annual assessment of wealth and assets compiled and published by Forbes in 2017. In the decades following

1575-579: The European Union , to address the new geopolitical situation which led to the energy crisis and damage to supply chains , causing shortages in raw materials. In March 2023, the United States banking crisis occurred with some bankruptcies and restructuring of American banks, however it was soon understood that it was a short-lived economic-financial phenomenon limited to the United States, although with some concern, it has not had an impact in

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1650-517: The Fortune Global 500 List, which ranks the world's largest companies by annual revenue. The figures below are given in millions of US dollars and are for the fiscal year 2018. Also listed are the headquarters location, net profit and industry sector of each company. rank (USD millions) (USD millions) In 2022, the sector with the highest number of companies registered in Italy

1725-690: The IMF ; "high income" economies, according to the World Bank . *Top country subdivisions by GDP *Top country subdivisions by GDP per capita *Top country metropolitan by GDP Annual growth rate Annual growth rate (AGR) is the change in the value of a measurement over the period of a year. Annual growth rate is a useful tool to identify trends in investments. According to a survey of nearly 200 senior marketing managers conducted by The Marketing Accountability Standards Board, 69% of subjects responded that they consider average annual growth rate to be

1800-729: The Marshall Plan over US$ 1.2 billion from 1947 to 1951. The end of aid through the Plan could have stopped the recovery but it coincided with a crucial point in the Korean War whose demand for metal and manufactured products was a further stimulus of Italian industrial production. In addition, the creation in 1957 of the European Common Market , with Italy as a founding member, provided more investment and eased exports. These favourable developments, combined with

1875-575: The Russian invasion of Ukraine on 24 February 2022. This crisis created the need to find an alternative supplier to Russia, subject to European Union sanctions . With rising energy prices, inflation rose in Europe , which was addressed by the European Central Bank with a progressive increase in interest rates. Furthermore, the PNRR ( Piano Nazionale di Ripresa e Resilienza  [ it ] ) had to be re-calibrated and re-agreed with

1950-639: The Spanish Civil War . By 1939, Italy had the highest percentage of state-owned enterprises after the Soviet Union . Italy's involvement in World War II as a member of the Axis powers required the establishment of a war economy . The Allied invasion of Italy in 1943 eventually caused the Italian political structure – and the economy – to rapidly collapse. The Allies, on the one hand, and

2025-580: The United Nations system. And it notes that: The designations "developed" and "developing" are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. Nevertheless, the UN Trade and Development considers that this categorization can continue to be applied: The developed economies broadly comprise Northern America and Europe, Israel, Japan,

2100-467: The United States (9%), Spain (5.2%), the United Kingdom (5.2%) and Switzerland (4.6%). In the post-World War II period, Italy saw a transformation from an agricultural-based economy which had been severely affected by the consequences of the World Wars , into one of the world's most advanced nations, and a leading country in world trade and exports . According to the Human Development Index ,

2175-620: The West German rates, in Europe, and among the OEEC countries only Japan had been doing better. The 1970s were a period of economic, political turmoil and social unrest in Italy, known as Years of lead . Unemployment rose sharply, especially among the young, and by 1977 there were one million unemployed people under the age of 24. Inflation continued, aggravated by the increases in the price of oil in 1973 and 1979. The budget deficit became permanent and intractable, averaging about 10 per cent of

2250-459: The World Bank ; moreover, HDI ranking is used to reflect the composite index of life expectancy, education, and income per capita. In 2023 , 40 countries fit all four criteria, while an additional 19 countries fit three out of four. Developed countries have generally more advanced post-industrial economies, meaning the service sector provides more wealth than the industrial sector . They are contrasted with developing countries , which are in

2325-479: The gross domestic product (GDP), gross national product (GNP), the per capita income , level of industrialization, amount of widespread infrastructure and general standard of living. Which criteria are to be used and which countries can be classified as being developed are subjects of debate. Different definitions of developed countries are provided by the International Monetary Fund and

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2400-409: The unification of Italy , the northern regions of the country , Lombardy , Piedmont and Liguria in particular, began a process of industrialization and economic development while the southern regions remained behind. At the time of the unification of the country, there was a shortage of entrepreneurs in the south, with landowners who were often absent from their farms as they lived permanently in

2475-642: The 1820s, that led to a diffuse, if mostly artisanal, concentration of manufacturing activities, especially in Piedmont-Sardinia under the liberal rule of the Count of Cavour . After the birth of the unified Kingdom of Italy in 1861, there was a deep consciousness in the ruling class of the new country's backwardness, given that the per capita GDP expressed in PPS terms was roughly half of that of Britain and about 25% less than that of France and Germany. During

2550-478: The 1860s and 1870s, the manufacturing activity was backward and small-scale, while the oversized agrarian sector was the backbone of the national economy. The country lacked large coal and iron deposits and the population was largely illiterate. In the 1880s, a severe farm crisis led to the introduction of more modern farming techniques in the Po valley , while from 1878 to 1887 protectionist policies were introduced with

2625-789: The 8th to the 20th century. In 1999, the euro became Italy's unit of account and the lira became a national subunit of the euro at a rate of 1 euro = 1,936.27 lire, before being replaced as cash in 2002. The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2022–2027). Inflation below 5% is in green. (in Bil. US$ PPP) (in US$ PPP) (in Bil. US$ nominal) (in US$ nominal) (real) (in Percent) (in Percent) (in % of GDP) This list displays all 6 Italian companies on

2700-492: The European area, with the exception of the collapse of Credit Suisse , in Switzerland . As a consequence, Italy is witnessing a tightening of its credit policies. For Italian banks, there was an opportunity to strengthen themselves, thanks to the high rates imposed by the European Central Bank . The new BTP Valore bonds were released, which were very successful among the private operators to whom they were marketed due to

2775-458: The Germans on the other, took over the administration of the areas of Italy under their control. By the end of the war, Italian per capita income was at its lowest point since the beginning of the 20th century. After the end of World War II, Italy was in rubble and occupied by foreign armies, a condition that worsened the chronic development gap among the more advanced European economies. However,

2850-486: The HDI accounts for more than income or productivity. Unlike GDP per capita or per capita income, the HDI takes into account how income is turned "into education and health opportunities and therefore into higher levels of human development." Since 1990, Norway (2001–2006, 2009–2019), Japan (1990–1991 and 1993), Canada (1992 and 1994–2000) and Iceland (2007–2008) have had the highest HDI score. The following countries in

2925-529: The IMF's list of 38 Advanced Economies, noting that the IMF's Advanced Economies list "would presumably also cover the following nine smaller countries of Andorra, Bermuda, Faroe Islands, Guernsey, Holy See, Jersey, Liechtenstein, Monaco, and San Marino[...]". San Marino (2012) and Andorra (2021) were later included in the IMF's list. There are 22 permanent members in the Paris Club ( French : Club de Paris ),

3000-579: The Italian economy. Italy is a large manufacturer and exporter of a significant variety of products. Its products include machinery , vehicles , pharmaceuticals , furniture, food and clothing. Italy has a significant trade surplus . The country is also well known for its influential and innovative business economic sector, an industrious and competitive agricultural sector (Italy is the world's largest wine producer), and manufacturers of creatively designed , high-quality products: including automobiles , ships , home appliances , and designer clothing . Italy

3075-556: The Pacific: According to the World Bank , the following 85 sovereign states and territories across are classified as "high income" economies , having a nominal GDP per capita in excess of $ 14,005 as of 2024: Unsovereign Territories are denoted with an asterisk (*) . There are 29 OECD member countries and the European Union —in the Development Assistance Committee (DAC), a group of

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3150-479: The Republic of Korea, Australia, and New Zealand. Terms linked to the concept developed country include "advanced country", "industrialized country", "more developed country" (MDC), "more economically developed country" (MEDC), " Global North country", " first world country", and "post-industrial country". The term industrialized country may be somewhat ambiguous, as industrialisation is an ongoing process that

3225-767: The addition of 7 microstates and dependencies modified by the CIA which were omitted from the IMF version: 29 countries and dependencies in Europe classified by the IMF, 6 others given by the CIA: Plus seven countries and territories in Asia : three countries and territories in the Americas classified by the IMF, one territory given by the CIA ;: two countries in Oceania : The CIA has modified an older version of

3300-472: The aim to establish a heavy industry base. Some large steel and iron works soon clustered around areas of high hydropower potential, notably the Alpine foothills and Umbria in central Italy, while Turin and Milan led a textile, chemical, engineering and banking boom and Genoa captured civil and military shipbuilding . However, the diffusion of industrialisation that characterised the northwestern area of

3375-404: The area, and then favouring emigration, especially from 1892 to 1921 . Developed country A developed country , or advanced country , is a sovereign state that has a high quality of life , developed economy , and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are

3450-477: The average. In Central Italy , GDP per capita is instead average. In recent years, Italy's GDP per capita growth slowly caught-up with the Eurozone average, while its employment rate also did. However, economists dispute the official figures because of the large number of informal jobs (estimated to be between 10% and 20% of the labour force ) that lift the inactivity or unemployment rates . The shadow economy

3525-457: The binary labeling of countries as "neither descriptive nor explanatory. It is merely a thoughtless and destructive endorsement of GDP fetish. In reality, there are not two types of countries, but over 200 countries, all faced with the same laws of nature, yet each with unique features." A 2021 analysis proposes the term emerged to describe markets, economies, or countries that have graduated from emerging market status, but have not yet reached

3600-476: The city, leaving the management of their funds to managers, who were not encouraged by the owners to make the agricultural estates to the maximum. Landowners invested not in agricultural equipment, but in such things as low-risk state bonds. In southern Italy, the unification of the country broke down the feudal land system, which had survived in the south since the Middle Ages , especially where land had been

3675-554: The country enjoys a very high standard of living . According to The Economist , Italy has the world's 8th highest quality of life . Italy owns the world's third-largest gold reserve , and is the third-largest net contributor to the budget of the European Union . Furthermore, the advanced country private wealth is one of the largest in the world. In terms of private wealth, Italy ranks second, after Hong Kong , in private wealth to GDP ratio . Among OECD members, Italy has

3750-549: The country largely excluded Venetia and, especially, the South . The resulting Italian diaspora concerned up to 26 million Italians, the most part in the years between 1880 and 1914; by many scholars, it is considered the biggest mass migration of contemporary times. During the Great War , the still frail Italian state successfully fought a modern war, being able of arming and training some 5 million recruits. But this result came at

3825-541: The economy partially recovered from the disastrous losses incurred during the Great Recession , primarily thanks to strong exports, but nonetheless, growth rates remained well below the Euro area average, meaning that Italy's GDP in 2019 was still 5 per cent below its level in 2008. Starting from February 2020, Italy was the first country of Europe to be severely affected by the COVID-19 pandemic , that eventually expanded to

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3900-596: The first Italian coinage systems were used in the Magna Graecia and Etruscan civilization , the Romans introduced a widespread currency throughout Italy. Unlike most modern coins, Roman coins had intrinsic value. The early modern Italian coins were very similar in style to French francs, especially in decimals, since it was ruled by the country in the Napoleonic Kingdom of Italy . They corresponded to

3975-527: The gross domestic product (GDP), higher than any other industrial country. The lira fell steadily, from Lire  560 to the U.S. dollar in 1973 to Lire 1,400 in 1982. The economic recession went on into the mid-1980s until a set of reforms led to the independence of the Bank of Italy and a big reduction of the indexation of wages that strongly reduced inflation rates, from 20.6% in 1980 to 4.7% in 1987. The new macroeconomic and political stability resulted in

4050-628: The high interest rates. From October 7, 2023, geopolitical tensions are becoming more intense, related to the conflict in the Middle East . In 2024, however, the Italian economy continues to maintain its resilient strength, thanks to the reduction in energy prices, and the maintenance or reduction of oil prices, this stability allows a reduction in inflation. In September 2024, the European Central Bank has decreased interest rates by 0.25 percentage points. The Italian economy copes with

4125-474: The inability of the government to estimate the land profitability, especially because of the huge differences among the regional cadast:ers, this policy irreparably induced large regional discrepancies. This policy destroyed the relationship between the central state and the Southern population by unchaining first a civil war called Brigandage , which brought about 20,000 victims by 1864 and the militarization of

4200-479: The inalienable property of aristocrats, religious bodies or the king. The breakdown of feudalism , however, and redistribution of land did not necessarily lead to small farmers in the south winding up with land of their own or land they could work and make profit from. Many remained landless, and plots grew smaller and smaller and so less and less productive, as land was subdivided amongst heirs. This gap between northern and southern Italy, called " southern question ",

4275-692: The largest in the world, dominated by the tertiary service sector. It is a great power and a founding member of the European Union, the Eurozone , the Schengen Area, the OECD , the G7 and the G20 ; it is the eighth-largest exporter in the world , with $ 611 billion exported in 2021. Its closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total trade. The largest trading partners , in order of market share in exports, are Germany (12.5%), France (10.3%),

4350-525: The late medieval and early Renaissance periods. After 1600 Italy experienced an economic catastrophe. In 1600 Northern and Central Italy comprised one of the most advanced industrial areas of Europe. There was an exceptionally high standard of living. By 1870 Italy was an economically backward and depressed area; its industrial structure had almost collapsed, its population was too high for its resources, its economy had become primarily agricultural. Wars, political fractionalization, limited fiscal capacity and

4425-458: The level equivalent to developed countries. Multinational corporations from these emerging markets present unique patterns of overseas expansion and knowledge acquisition from foreign countries. The UN HDI is a statistical measure that gauges an economy's level of human development. While there is a strong correlation between having a high HDI score and being a prosperous economy, the UN points out that

4500-695: The new geopolitical logic of the Cold War made possible that the former enemy Italy, a hinge country between Western Europe and the Mediterranean , and now a new, fragile democracy threatened by the NATO occupation forces, the proximity of the Iron Curtain and the presence of a strong Communist party , was considered by the United States as an important ally for the Free World , and received under

4575-526: The presence of a large labour force, laid the foundation for spectacular economic growth that lasted almost uninterrupted until the " Hot Autumn 's" massive strikes and social unrest of 1969–70, which then combined with the later 1973 oil crisis and put an abrupt end to the prolonged boom. It has been calculated that the Italian economy experienced an average rate of growth of GDP of 5.8% per year between 1951 and 1963, and 5% per year between 1964 and 1973. Italian rates of growth were second only, but very close, to

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4650-416: The process of industrialisation or are pre-industrial and almost entirely agrarian , some of which might fall into the category of Least Developed Countries . As of 2023 , advanced economies comprise 57.3% of global GDP based on nominal values and 41.1% of global GDP based on purchasing-power parity (PPP) according to the IMF . Economic criteria have tended to dominate discussions. One such criterion

4725-422: The relative military safety of Venetian lagoons, the high population density and the institutional structure which inspired entrepreneurs. The Republic of Venice was the first real international financial center , which slowly emerged from the 9th century to its peak in the 15th century. Tradeable bonds as a commonly used type of security, were invented by the Italian city-states (such as Venice and Genoa ) of

4800-464: The rest of the world. The economy suffered a massive shock as a result of the lockdown of most of the country's economic activity. After three months, at the end of May 2020, the pandemic was put under control, and the economy started to recover, especially, the manufacturing sector. Overall, it remained surprisingly resilient, although GDP plummeted like in most western countries. The Italian government issued special treasury bills, known as BTP Futura as

4875-411: The safest among Europe's struggling economies. As a shock therapy to avoid the debt crisis and kick-start growth, the national unity government led by the economist Mario Monti launched a program of massive austerity measures , that brought down the deficit but precipitated the country in a double-dip recession in 2012 and 2013, receiving criticism from numerous economists. In the period 2014-2019,

4950-405: The shift of world trade to north-western Europe and the Americas were key factors. The economic history of Italy after 1861 can be divided in three main phases: an initial period of struggle after the unification of the country, characterised by high emigration and stagnant growth; a central period of robust catch-up from the 1890s to the 1980s, interrupted by the Great Depression of the 1930s and

5025-445: The space of a few years. However, the Italian economy of the 1980s presented a problem: it was booming, thanks to increased productivity and surging exports, but unsustainable fiscal deficits drove the growth. In the 1990s, the new Maastricht criteria boosted the urge to curb the public debt, already at 104% of GDP in 1992. The consequent restrictive economic policies worsened the impact of the global recession already underway. After

5100-408: The steamboat construction and navigation sectors and, above all, the public spending in the railway sector, which represented 53% of the 1861–1911 total. The resources necessary to finance the public spending effort were obtained through highly unbalanced land property taxes, which affected the key source of savings available for investment in the growth sectors absent a developed banking system. Given

5175-452: The two world wars; and a final period of sluggish growth that has been exacerbated by a double-dip recession following the 2008 global financial crush, and from which the country is slowly reemerging only in recent years. Prior to unification, the economy of the many Italian statelets was overwhelmingly agrarian; however, the agricultural surplus produced what historians call a "pre-industrial" transformation in North-western Italy starting from

5250-409: The wishes of the government and the wishes of business. This economic model based on a partnership between government and business was soon extended to the political sphere, in what came to be known as corporatism . At the same time, the aggressive foreign policy of Mussolini led to increasing military expenditure. After the invasion of Ethiopia , Italy intervened to support Franco 's nationalists in

5325-435: The world's major donor countries that discusses issues surrounding development aid and poverty reduction in developing countries . The following OECD member countries are DAC members: 25 countries in Europe: two countries in the Americas: two countries in Asia: two countries in Oceania: According to the International Monetary Fund , 41 countries and territories are officially listed as "advanced economies", with

5400-603: The year 2022 are considered to be of "very high human development": annual growth (2010-2022) According to the United Nations Department of Economic and Social Affairs ' World Economic Situation and Prospects report, the following 37 countries are classified as "developed economies" as of January 2024: 31 countries in Europe: two countries in Northern America: four countries in Asia and

5475-491: Was also induced by the region-specific policies selected by the post-unitary governments. For example, the 1887 protectionist reform, instead of safeguarding the arboriculture sectors crushed by 1880s fall in prices, shielded the Po Valley wheat breeding and those Northern textile and manufacturing industries that had survived the liberal years due to state intervention. A similar logic guided the assignment of monopoly rights in

5550-670: Was hit hard by the Great Depression . In order to deal with the crisis, the Fascist government nationalized the holdings of large banks which had accrued significant industrial securities, establishing the Istituto per la Ricostruzione Industriale . A number of mixed entities were formed, whose purpose was to bring together representatives of the government and of the major businesses. These representatives discussed economic policy and manipulated prices and wages so as to satisfy both

5625-499: Was somewhat hit by the late-2000s recession . Massive government spending from the 1980s onwards has produced a severe rise in public debt . In addition, Italian living standards are extremely high on average, but have a considerable North–South divide : the average GDP per capita in the much richer Northern Italy significantly exceeds the EU average, while some regions and provinces in Southern Italy are significantly below

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