ITALY

Italy's economy in the 21st century has been mixed, experiencing both relative economic growth and stagnation, recession and stability. As of the 2000s recession, more notably the 2008 recession and the 2009 recession, Italy was one of the few countries whose economy did not contract dramatically, and kept a relatively stable economic growth, yet figures for economic growth in 2009 and 2010 have showed a negative average, ranging from around -1% to -5%.The late-first decade of the 21st century recession has also gripped Italy; car sales in Italy have fallen by almost 20 percent over each of the past two months. Italy's car workers' union said; "The situation is evidently more serious than had been understood." On 10 July 2008 economic think tank ISAE lowered its growth forecast for Italy to 0.4 percent from 0.5 percent and cut the 2009 outlook to 0.7 percent from 1.2 percent. Analysts have predicted Italy had entered a recession in the second quarter or would enter one by the end of the year with business confidence at its lowest levels since the September 11 attacks. Italy's economy contracted by 0.3 percent in the second quarter of 2008. In the 4 quarters of 2006, Italy's growth rates were approximately these: +0.6% in the Q1, +0.6% in the Q2, +0.65% in the Q3 and 1% in the Q4. Similarly, in 2007's 4 quarters, these were the figures: +0.25% in the Q1, +0.1% in the Q2, +0.2% in the Q3, and -0.5% in the Q4. In the 4 of 2008's quarters, the results, mainly negative, were these: +0.5% in the Q1, -0.6% in the Q2, -0.65% in the Q3 and -2.2% in the Q4. In the Q1 (1st quarter) of 2009, Italy's economy contracted by 4.9%, a greater contraction than the predictions of the Italian government, which believed that it would be of at most 4.8%. The Q2 (2nd quarter) saw a smaller decrease in GDP, more or less that of -1%, and by the Q3 (3rd quarter), the economy began to re-grow slightly, with GDP increase rates of about +0.2% to +0.6%. Yet, in the Q4 (4th quarter) of the year 2009, Italy's GDP growth was of -0.2%. ISTAT predicts that Italy's falling economic growth rate is due to a general decrease in the country's industrial production and exports. However, the Government of Italy believes that 2010 and beyond will bring higher growth rates: anything from circa +0.7% - +1.1%.

ITALYS CURRENT GDP GROWTH RATE The Gross Domestic Product (GDP) in Italy contracted 0.2 percent in the third quarter of 2011 over the previous quarter. Historically, from 1981 until 2011, Italy's average quarterly GDP Growth was 0.35 percent reaching an historical high of 2.20 percent in December of 1983 and a record low of 3.00 percent in March of 2009. Italy is a member of the G8 group of leading industrialized countries. Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises. This page includes: Italy GDP Growth Rate chart, historical data, forecasts and news. Data is also available for Italy GDP Annual Growth Rate, which measures growth over a full economic year.

In a broad sense we can say that Italys Growth is zero and has been so for ten years after a short economic boom in 80/90s. This is Italy's biggest problem and its government is urged to come up with an economic development plan. Tourists come from abroad for a large part and as such this industry is less affected by Italy's troubles, though it will suffer from the general European crisis. Italy has a diversified industrial economy with high gross domestic product (GDP) per capita and developed infrastructure. According to the International Monetary Fund, the World Bank and the CIA World Factbook, in 2010 Italy was the seventh-largest economy in the world and the fourthlargest in Europe in terms of nominal GDP, and the tenth-largest economy in the world and fifthlargest in Europe in terms of purchasing power parity (PPP) GDP. Italy is member of the Group of Eight (G8) industrialized nations, the European Union and the OECD.

ITALY CURRENT ACCOUNT BALANCE

Balance of payment figures:

According to recent balance-of-payments figures calculated by the Bank of Italy, the external deficit is estimated to be around % of GDP lower in both years, due to a smaller deficit in the balance of primary income. External balance projections for 2011-12 incorporate the revised primary income statistics.(78) Over the forecast horizon, the external deficit is forecast to remain between 3% and 3% of GDP. LIFE EXPECTANCY AT BIRTH; TOTAL (YEARS) IN ITALY The Life expectancy at birth; total (years) in Italy was reported at 81.95 in 2008, according to the World Bank. Life expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life.This page includes a historical data chart, news and forecats for Life expectancy at birth; total (years) in Italy. Italy is a member of the G8 group of leading industrialized countries. Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises.

ITALY POPULATION

The total population in Italy was last reported at 60.6 million people in 2010 from 50.2 million in 1960, changing 21 percent during the last 50 years. Italy has 0.88 percent of the worlds total population which means that one person in every 114 people on the planet is a resident of Italy.

ITALY UNEMPLOYMENT RATE The unemployment rate in Italy was last reported at 8.5 percent in October of 2011. From 1983 until 2010, Italy's Unemployment Rate averaged 9.00 percent reaching an historical high of 11.50 percent in April of 1998 and a record low of 5.70 percent in April of 2007. The labour force is defined as the number of people employed plus the number unemployed but seeking work. The nonlabour force includes those who are not looking for work, those who are institutionalised and those serving in the military.

EUR/USD - EXCHANGE RATE IN ITALY The euro is the official currency of Italy, which is a member of the European Union. The Euro Area refers to a currency union among the European Union member states that have adopted the euro as their sole official currency. In Italy, interest rate decisions are taken by the Governing Council of the European Central Bank. The Euro exchange rate (EURUSD) depreciated 3.38 percent against the US Dollar during the last month. During the last 12 months, the Euro exchange rate (EURUSD) depreciated 0.72 percent against the US Dollar. Historically, from 1975 until 2011 the EURUSD exchange averaged 1.18 reaching an historical high of 1.60 in April of 2008 and a record low of 0.64 in February of 1985. The Euro spot exchange rate specifies how much one currency, the EUR, is

currently worth in terms of the other, the USD. While the Euro spot exchange rate is quoted and exchanged in the same day, the Euro forward rate is quoted today but for delivery and payment on a specific future date.

ITALY EXPORTS Italy exports were worth 32.1 Billion EUR in October of 2011. Italy's major exports are precision machinery, motor vehicles (utilitaries, luxury vehicles, motorcycles, scooters), chemicals and electric goods, but the country's more famous exports are in the fields of food and clothing. Italy's closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total exports. Italy's largest EU trade partners are Germany and France.

ITALY INDUSTRIAL PRODUCTION Industrial Production in Italy contracted 3.24 percent in October of 2011. Industrial production measures changes in output for the industrial sector of the economy which includes manufacturing, mining, and utilities. Industrial Production is an important indicator for economic forecasting and is often used to measure inflation pressures as high levels of industrial production can lead to sudden changes in prices. From 1991 until 2010, Italy's industrial production averaged -0.07 percent

reaching an historical high of 17.40 percent in August of 1994 and a record low of -25.60 percent in April of 2009.

ITALY INFLATION RATE The inflation rate in Italy was last reported at 3.3 percent in November of 2011. From 1997 until 2010, the average inflation rate in Italy was 2.15 percent reaching an historical high of 4.10 percent in July of 2008 and a record low of 0.00 percent in July of 2009. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy.

ITALY INTEREST RATE Italy is a member of the Euro Area, an economic and monetary union (EMU) of European Union (EU) member states that have adopted the euro. The Euro Area benchmark interest rate stands at 1.00 percent. in the Euro Area, interest rate decisions are taken by the Governing Council of the European Central Bank. The primary objective of the ECBs monetary policy is to maintain price stability. The ECBs Governing Council has defined price stability as "a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for The Euro Area of below 2%. The European Central Bank is the sole issuer of banknotes and bank reserves. That means it has the monopoly supplier of the monetary base. By virtue of this monopoly, it can set the conditions at which banks

borrow from the Central Bank. Therefore it can also influence the conditions at which banks trade with each other in the money market. in the short run, a change in money market interest rates induced by the Central Bank sets in motion a number of mechanisms and actions by economic agents. Ultimately the change will influence developments in economic variables such as output or prices.

GNI; ATLAS METHOD (US DOLLAR) IN ITALY The GNI; Atlas method (US dollar) in Italy was last reported at 2125844764893.52 in 2010, according to a World Bank report released in 2011. The GNI; Atlas method (US dollar) in Italy was reported at 2121598030733.95 in 2008, according to the World Bank. GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Data are in current U.S. dollars. GNI, calculated in national currency, is usually converted to U.S. dollars at official exchange rates for comparisons across economies, although an alternative rate is used when the official exchange rate is judged to diverge by an exceptionally large margin from the rate actually applied in international transactions. To smooth fluctuations in prices and exchange rates, a special Atlas method of conversion is used by the World Bank. This applies a conversion factor that averages the exchange rate for a given year and the two preceding years, adjusted for differences in rates of inflation between the country, and through 2000, the G-5 countries (France, Germany, Japan, the United Kingdom, and the United States). From 2001, these countries include the Euro area, Japan, the United Kingdom, and the United States. This page includes a historical data chart, news and forecast for GNI; Atlas method (US dollar) in Italy. Italy is a member of the G8 group of leading industrialized countries. Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises.

POVERTY IN ITALY Istat disseminates the relative and absolute poverty estimations for the households residing in Italy, based on 2009 Households Budget Survey data. Being sample estimations, they are affected by sampling error: small differences can be not statistically significant. In 2009 the relative poverty incidence was equal to 10.8%, whereas the absolute poverty to 4.7%. Taking into account the sampling error, the phenomenon was stable in comparison with 2008. The South and the Islands confirmed the incidence levels reached in 2008 (22.7% for relative poverty, 7.7% for absolute poverty) and it showed an increase for the absolute poverty intensity (from 17.3% to 18.8%): the number of absolutely poor households stays almost the same, but their average conditions worsened. The poverty incidence increased, from 2008 to 2009, among the households with a worker as reference person, both in relative (in the Centre from 7.9% to 11.3%) and in absolute terms (at the national level from 5.9% to 6.9%). AGRICULTURAL LAND (% OF LAND AREA) IN ITALY Agricultural land refers to the share of land area that is arable, under permanent crops, and under permanent pastures. Arable land includes land defined by the FAO as land under temporary crops (double-cropped areas are counted once), temporary meadows for mowing or for pasture, land under market or kitchen gardens, and land temporarily fallow. Land abandoned as a result of shifting cultivation is excluded. Land under permanent crops is land cultivated with crops that occupy the land for long periods and need not be replanted after each harvest, such as cocoa, coffee, and rubber. This category includes land under flowering shrubs, fruit trees, nut trees, and vines, but excludes land under trees grown for wood or timber. Permanent pasture is land used for five or more years for forage, including natural and cultivated crops.This page includes a historical data chart, news and forecats for Agricultural land (% of land area) in Italy. Italy is a member of the G8 group of leading industrialized countries. Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and mediumsized enterprises.

Rank Currency Fiscal year Trade organisations Statistics GDP GDP growth GDP per capita $29,109 (2009) GDP by sector Inflation (CPI) Gini index Labour force Labour force by occupation Unemployment Average gross salary Average net salary Main industries Ease of Doing Business Rank External Exports Export goods Main export partners

ECONOMIC CONDITION SUMMARY 8th (nominal) / 10th (PPP) Euro (EUR), except in Campione d'Italia (CHF) calendar year EU, WTO (via EU membership) and OECD $2.055 trillion (2010) (nominal; 8th) $1.773 trillion (2010)(nominal; 10th) 1.1% (2010) $35,435 (2009)[3] (nominal; 21st) agriculture: 1.8%; industry: 24.9%; services: 73.3% (2010 est.) 1.4% (2010 est.) 36 (2009) 25.05 million (2010 est.) services (65.1%), industry (30.7%), agriculture (4.2%) (2005) 8.4% (Feb. 2011) 2,521 / 3,403 $, monthly (2006) 1,457 / 1,967 $, monthly (2006) tourism, communications, machinery, steel, chemicals, pharmaceuticals, food processing, clothing, fashion. 87th $458.4 billion (2010 est.) engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals. Germany 12.6%, France 11.57%, United States 5.92%, Spain 5.69%, United Kingdom 5.13%, Switzerland 4.69% (2009)

Imports Import goods Main import partners FDI stock Gross external debt Public finances Public debt Revenues Expenses Economic aid

$459.7 billion (2010 est.) engineering products, chemicals, transport equipment, energy products, textiles and clothing; food, beverages, and tobacco Germany 16.68%, France 8.82%, China 6.53%, Netherlands 5.63%, Spain 4.3%, Russia 4.12%, Belgium 4.08% (2009) $405.1 billion (31 December 2010 est.) $2.223 trillion (30 June 2010 est.) 118.1% of GDP (2010 est.) $960.1 billion (2009 est.) $1.068 trillion (2009 est.) donor: $2.48 billion, 0.15% of GDP (2004) Standard & Poor's A (Domestic) A (Foreign) AAA (T&C Assessment) Outlook: Negative Moody's A2 Outlook: Stable Fitch AAOutlook: Positive US$165.796 billion (March 2011)

Credit rating

Foreign reserves

SPAIN
We are well aware, Spain is facing its longest and deepest recession in 50 years. While the depth of the recession has been broadly similar to other advanced OECD economies in terms of real GDP, the rise in unemployment and the deterioration of government finances have been steeper. Importantly, the government response has been appropriate, which helped mitigate the worst effects of the crisis. This includes an ambitious consolidation programme to reduce the public deficit and measures to restore confidence to the financial sector, including extensive stress tests on banks measures to strengthen the resilience of the cajas. Progress was also made on structural reforms, especially those concerning the labour market. Despite these encouraging responses, the crisis has left its mark on the Spanish economy. The downsizing of the construction sector, while still incomplete, is largely permanent. The current account deficit may have improved, but the debt burden of the private sector, especially among households, is still high, limiting the contribution private consumption can make to future economic growth. More recently, the Spanish economy had benefited greatly from the global real estate boom, with construction representing an astonishing 16% of GDP and 12% of employment in its final year.

According to calculations by the German newspaper Die Welt, Spain had been on course to overtake countries like Germany in per capita income by 2011. However, the downside of the defunct real estate boom was a corresponding rise in the levels of personal debt; as prospective homeowners had struggled to meet asking prices, the average level of household debt tripled in less than a decade. This placed especially great pressure upon lower to middle income groups; by 2005 the median ratio of indebtedness to income had grown to 125%, due primarily to expensive boom time mortgages that now often exceed the value of the property. A European Commission forecast had predicted Spain would enter a recession by the end of 2008. According to Spains Economy Minister, Spain faces its deepest recession in half a century. Spain's government forecast the unemployment rate would rise to 16% in 2009. The ESADE business school predicted 20%. Due to its own economic development and the recent EU enlargements up to 28 members (2007), Spain had a GDP per capita of (105%) of EU average per capita GDP in 2006, which placed it slightly ahead of Italy (103%). As for the extremes within Spain, three regions in 2005 were included in the leading EU group exceeding 125% of the GDP per capita average level: Basque Autonomous Community leading with Madrid and Navarre, and one was at the 85% level (Extremadura. According to the growth rates post 2006, noticeable progress from these figures happened until early 2008, when the Spanish economy was heavily affected by the puncturing of its property bubble by the global financial crisis. The centre-right government of former prime minister Jos Mara Aznar had worked successfully to gain admission to the group of countries launching the euro in 1999. Unemployment stood at 7.6% in October 2006, a rate that compared favorably to many other European countries, and especially with the early 1990s when it stood at over 20%. Perennial weak points of Spain's economy include high inflation, a large underground economy, and an education system which OECD reports place among the poorest for developed countries. However, the property bubble that had begun building from 1997, fed by historically low interest rates and an immense surge in immigration, imploded in 2008, leading to a rapidly weakening economy and soaring unemployment.

SPAIN UNEMPLOYMENT RATE

The unemployment rate in Spain was last reported at 21.5 percent in the third quarter of 2011. From 1983 until 2010, Spain's Unemployment Rate averaged 14.20 percent reaching an historical high of 20.00 percent in June of 2010 and a record low of 8.00 percent in March of 2007. The labour force is defined as the number of people employed plus the number unemployed but seeking work. The nonlabour force includes those who are not looking for work, those who are institutionalised and those serving in the military.

SPAIN INFLATION RATE The inflation rate in Spain was last reported at 2.9 percent in November of 2011. From 2002 until 2010, the average inflation rate in Spain was 2.78 percent reaching an historical high of 5.30 percent in July of 2008 and a record low of -1.40 percent in July of 2009. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy.

SPAIN CURRENT ACCOUNT

Spain reported a current account deficit equivalent to 3.6 Billions EUR in September of 2011. Spain major exports are: wine, machinery, motor vehicles and foodstuffs. Spain imports mainly machinery and equipment, fuels, chemicals, semi finished goods, foodstuffs and consumer goods. The EU accounts for 70 percent of Spain's exports and 59 percent of imports, the most important trading partners being France and Germany.

SPAIN BALANCE OF TRADE Spain reported a trade deficit equivalent to 3632 Million EUR in October of 2011. Spain major exports are: wine, machinery, motor vehicles and foodstuffs. Spain imports mainly machinery and equipment, fuels, chemicals, semi finished goods, foodstuffs and consumer goods. The EU accounts for 70 percent of Spain's exports and 59 percent of imports, the most important trading partners being France and Germany.

ADJUSTED NET NATIONAL INCOME (ANNUAL % GROWTH) IN SPAIN The Adjusted net national income (annual % growth) in Spain was 0.91 in 2009, according to a World Bank report, published in 2010. The Adjusted net national income (annual % growth) in Spain was reported at -1.29 in 2008, according to the World Bank. Spain's economy is the fifth largest in Europe. Spain is part of the European Union since 1986 which required the country to open its economy to trade and investment. The Spanish economy grew every year from 1994 through 2008 before entering a recession that started in the third quarter of 2008.

SPAIN INTEREST RATE Spain is a member of the Euro Area, an economic and monetary union (EMU) of European Union (EU) member states that have adopted the euro. The Euro Area benchmark interest rate stands at 1.00 percent. in the Euro Area, interest rate decisions are taken by the Governing Council of the European Central Bank. The primary objective of the ECBs monetary policy is to maintain price stability. The ECBs Governing Council has defined price stability as "a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for The Euro Area of below 2%. The European Central Bank is the sole issuer of banknotes and bank reserves. That means it has the monopoly supplier of the monetary base. By virtue of this monopoly, it can set the conditions at which banks borrow from the Central Bank. Therefore it can also influence the conditions at which banks trade with each other in the money market. in the short run, a change in money market interest rates induced by the Central Bank sets in motion a number of mechanisms and actions by economic agents. Ultimately the change will influence developments in economic variables such as output or prices.

SPAIN EXPORTS Spain exports were worth 19394 Millions EUR in October of 2011. Spain major exports are: machinery, motor vehicles, fuels, chemicals, and semi-finished goods and foodstuffs. Spain is also the third largest wine exporter in the world. The EU accounts for 70 percent of Spain's exports, the most important trading partners being France and Germany.

SPAIN INDUSTRIAL PRODUCTION Industrial Production in Spain declined 4.2 percent in October of 2011. Industrial production measures changes in output for the industrial sector of the economy which includes manufacturing, mining, and utilities. Industrial Production is an important indicator for economic forecasting and is often used to measure inflation pressures as high levels of industrial production can lead to sudden changes in prices.

SPAIN POPULATION

The total population in Spain was last reported at 46.1 million people in 2010 from 30.5 million in 1960, changing 51 percent during the last 50 years. Spain has 0.67 percent of the worlds total population which means that one person in every 150 people on the planet is a resident of Spain.

SPAIN IMPORTS Spain imports were worth 23026 Million EUR in October of 2011. Spain major imports are machinery and equipment, fuels, chemicals, semi finished goods, foodstuffs and consumer goods. Its principal import partners are European Union countries (Germany, France, Italy, UK, Netherlands) and China.

GROSS SAVINGS (% OF GDP) IN SPAIN The Gross savings (% of GDP) in Spain was reported at 20.20 in 2008, according to the World Bank. Gross savings are calculated as gross national income less total consumption, plus net transfers. Spain's economy is the fifth largest in Europe. Spain is part of the European Union since 1986 which

required the country to open its economy to trade and investment. The Spanish economy grew every year from 1994 through 2008 before entering a recession that started in the third quarter of 2008.