<hdr>The World Factbook 1994: Italy<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> Since World War II the Italian economy has changed from one based on agriculture into a ranking industrial economy, with approximately the same total and per capita output as France and the UK. The country is still divided into a developed industrial north, dominated by private companies, and an undeveloped agricultural south, dominated by large public enterprises. Services account for 48% of GDP, industry 35%, agriculture 4%, and public administration 13%. Most raw materials needed by industry and over 75% of energy requirements must be imported. After growing at an annual average rate of 3% in 1983-90, growth slowed to about 1% in 1991 and 1992 and fell by 0.7% in 1993. In the second half of 1992, Rome became unsettled by the prospect of not qualifying to participate in EC plans for economic and monetary union later in the decade; thus it finally began to address its huge fiscal imbalances. Thanks to the determination of Prime Ministers AMATO and CIAMPI, the government adopted a fairly stringent budget for 1993 and 1994, abandoned its highly inflationary wage indexation system, and started to scale back its extremely generous social welfare programs, including pension and health care benefits. Monetary officials were forced to withdraw the lira from the European monetary system in September 1992 when it came under extreme pressure in currency markets. For the 1990s, Italy faces the problems of refurbishing a tottering communications system, curbing pollution in major industrial centers, and adjusting to the new competitive forces accompanying the ongoing economic integration of the European Union.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$967.6 billion (1993)
<item><hi format=bold>National product real growth rate:</hi> -0.7% (1993)
<item><hi format=bold>National product per capita:</hi> $16,700 (1993)
<item>• <hi format=ital>commodities:</hi> metals, textiles and clothing, production machinery, motor vehicles, transportation equipment, chemicals, other
<item>• <hi format=ital>partners:</hi> EC 58.3%, US 6.8%, OPEC 5.1% (1992)
<item>• <hi format=ital>consumption per capita:</hi> 4,060 kWh (1992)
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<item><hi format=bold>Industries:</hi> machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics
<item><hi format=bold>Agriculture:</hi> accounts for about 4% of GDP and about 9.8% of the work force; self-sufficient in foods other than meat, dairy products, and cereals; principal crops—fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; fish catch of 525,000 metric tons in 1990
<item><hi format=bold>Illicit drugs:</hi> important gateway country for Latin American cocaine and Southwest Asian heroin entering the European market
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>donor:</hi> ODA and OOF commitments (1970-89), $25.9 billion
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<item><hi format=bold>Currency:</hi> 1 Italian lira (Lit)=100 centesimi
<item><hi format=bold>Exchange rates:</hi> Italian lire (Lit) per US$1—1,700.2 (January 1994), 1,573.7 (1993), 1,232.4 (1992), 1,240.6 (1991), 1,198.1 (1990), 1,372.1 (1989)
<item><hi format=bold>Fiscal year:</hi> calendar year
