Italy Introduction Key Economic Facts Risk Assessment (Provided by Coface) Italy is a country located in Southern Europe comprising the Income Level (by per capita High Income Country rating: B - Political and economic uncertainties boot-shaped Italian peninsula and a number of islands GNI): and an occasionally difficult business environment can including Sicily and Sardinia. Neighboring countries include Level of Development: Developed affect corporate payment behavior. Corporate default Austria, France, Holy See, San Marino, GDP, PPP (current international $2,668.05 billion (2019) Slovenia, and Switzerland. Italy has a $): probability is appreciable. strategic location dominating central GDP growth (annual %): 0.34% (2019) Business Climate rating: A2 - The business environment Mediterranean as well as proximity to GDP per capita, PPP (current $44,248.19 (2019) is good. When available, corporate financial information is Western Europe across the Adriatic Sea. international $): reliable. Debt collection is reasonably efficient. Institutions The government system is a republic; the chief of state is Manufacturing, value added (% 14.87% (2019) generally perform efficiently. Intercompany transactions the president, and the head of government is the prime of GDP): minister. Italy has a diversified industrial economy, which is Current account balance (BoP, $58.93 billion (2019) usually run smoothly in the relatively stable environment divided into a developed current US$): rated A2. industrial north, dominated by Inflation, consumer prices 0.61% (2019) Strengths (annual %): private companies, and a less • Manufacturing industry still important (machinery, developed, welfare-dependent, Labor force, total: 25,850,222 (2020) pharmaceuticals, etc.) agricultural south. Italy is a Unemployment, total (% of 9.84% (2020) member of the European Union total labor force) (modeled ILO • Increasing efforts to combat tax evasion and reduce estimate): (EU). informality Imports of goods and services $570.07 billion (2019) (current US$): • Bank asset quality has significantly improved Location: Southern Europe Exports of goods and services $631.20 billion (2019) • Comparative advantage in high-end food products Capital City: Rome (+1 GMT) (current US$): • European support creates opportunity for Chief of State: President Sergio Mattarella modernization Head of Govt.: Prime Minister Mario Draghi Weaknesses Currency: Euro (EUR) GDP Composition % Agriculture Services Industry Manufacturing • Public debt still very high, net international investment Major Languages: <p>Italian (official), German (parts of Trentino-Alto Adige region are position very negative predominantly German speaking), 66 • Very high youth unemployment that motivates brain French (small French-speaking 21 15 minority in Valle d'Aosta region), 2 drain Slovene (Slovene-speaking minority in • Prevalence of small, low-productivity companies the Trieste-Gorizia area)</p> *Although Manufacturing is included in the Industry figures, it is also separately reported because it plays a critical role in economy. (more than 90% of firms have 10 employees or less) Primary Religions: <p>Christian 83.3% (overwhelmingly Rankings Roman Catholic with very small • Strong exposure to pandemic-sensitive sectors groups of Jehovah's Witnesses Index Rank (tourism, automotive, textiles) and Protestants), Muslim 3.7%, Corruption Perceptions Index 51 / 180 unaffiliated 12.4%, other 0.6% (2010 • Strong regional disparities, organized crime still EY Globalization Index 30 / 60 est.)</p> influential in the South Calling Code: 39 Global Competitiveness Index 30 / 141 Voltage: 230 Global Enabling Trade Index 36 / 136 U.S. Embassy Global Manufacturing Competitiveness Index 28 / 40 U.S. Embassy Rome (GMCI) Key Websites via Vittorio Veneto 121 Index of Economic Freedom 80 / 179 Main Government Page: governo.it 00187 Roma International Logistics Performance Index (LPI) 19 / 160 Tel: (+39) 06.46741 Commerce Ministry: mise.gov.it Inward FDI Potential Index 31 / 139 Export Promotion Agency: ice.it KOF Index of Globalization 23 / 185 https://it.usembassy.gov/ Investment Promotion invitalia.it Networked Readiness Index (NRI) 45 / 139 Agency: Open Budget Index 13 / 115 Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.