Economy In Italy

After Italian unification in 1871, the country experienced a distributed and difficult industrialization and modernization process. Major industries were initially located only in the regional capitals and in the northern and central regions. The northeastern and southern areas of the country, by contrast, were still entirely agriculture and very impoverished. Thus, these regions provided the millions of Italian immigrants who left for North America and elsewhere in this period

The Mussolini era saw extreme government control over many areas of the economy. By the end of World War Two, per capita income was at a very low level. However, the postwar period saw a major recovery and the “Italian Economic Miracle.” Italy’s favorable position in Europe and its large, skilled labor force lead to record growth and established Italy’s reputation as an industrial powerhouse.

Since the 1970s, political and economic difficulties have led to slow growth, with rates eventually falling below the EU average. The 2008 recession hit Italy especially hard, and Italy economy problems now include high unemployment, a poverty rate of 5.7 percent and a public debt of 132.5 percent of GDP.

The Italy economy today remains one of the largest European economies, but these Italy economy problems continue to make prospects for increased growth problematic. On the other hand, investor worries about Italy have decreased since 2013 and there are prospects for improvement. Major targets of reform today include combating tax evasion and increasing the efficiency of the labor market.