ITALY MACRO DATA

 Aging and declining population ,

 Black market accounts for a major part of country’s output (shadow economy)
 Along with Germany and France , account for more than half of EU’s GDP
 GDP peaked around 2008, from then fell, lost 20% of its economic output
 From 1960 , end of world war, the country has shown trend of sudden uprise ,
followed by stagnation , negative growth and repeat .
 Most powerful industrial economy in the world , until it was taken over by netherland
and uk
 Part of eu top 5
 Good trade advantage ,
 Italy rebuilt after ww2
 Marshall plan , US aimed to develop western Europe
 1980 Bologna attack , massacre
 1985 – 1992 , 3x economic output (485bn-1.32Tn)
 Backbone industries , tax evasion
 Eurozone entry , adoption of Euro in 1999 , helped 2x output within a year
 24% of total population is over 65yrs
 Low birth rate
 Lot of young graduates moving out of the country (net sender)
 Average size of Italian business is significantly lower than in other EU countries
 Italy 3.6<14 avg no.of worker per company
 25% economy made by black market industries , now 12%
 Highest poverty in EU
 High un
ITALY TRANSITION INTO MIXED ECONOMY
Italy has not always been a mixed economy. Like many countries, Italy's economic
system has evolved over time in response to various political, social, and economic
factors. Historically, Italy's economy has undergone several transitions:

1. **Pre-World War II**: Before World War II, Italy had a predominantly agrarian
economy with a large rural population engaged in agriculture. Industrialization began
to take hold in the late 19th and early 20th centuries, particularly in the northern
regions, leading to the growth of manufacturing and urbanization. However, during
this period, the Italian economy was characterized by a significant wealth gap
between the industrialized north and the agrarian south.

2. **Fascist Era**: Under Benito Mussolini's fascist regime (1922-1943), Italy

adopted a corporatist economic model. The government heavily intervened in the
economy, promoting state-controlled capitalism and corporatist organizations
representing various sectors. While private enterprise still existed, the state played a
significant role in directing economic activity and fostering economic autarky.

3. **Post-World War II Reconstruction**: After World War II, Italy experienced a

period of reconstruction and economic growth, particularly in the 1950s and 1960s.
This period saw the development of a mixed economy, with a combination of private
enterprise, state intervention, and social welfare programs. The government played a
role in directing industrial policy and supporting strategic sectors of the economy.

4. **European Integration**: Italy's entry into the European Economic Community

(EEC), now the European Union (EU), in 1957 further influenced its economic
system. Membership in the EEC facilitated trade integration and economic
cooperation with other European countries, while also subjecting Italy to EU
regulations and policies.

5. **Modern Era**: In the late 20th and early 21st centuries, Italy's economy
continued to evolve as it faced challenges such as globalization, technological
advancements, and demographic changes. The economy remains characterized by a
mix of private enterprise, government intervention, and social welfare provisions,
with ongoing debates and reforms aimed at addressing issues such as competitiveness,
productivity, and regional disparities.

In summary, while Italy's economic system has not always been explicitly described
as a mixed economy, elements of both market-oriented principles and government
intervention have been present throughout its history, with the specific balance and
nature of these elements evolving over time.
 The GDP of Italy is estimated around $2.28 trillion , and Italy is ranked the 8th largest
economy in the world

Similar to India , Majority of Italy’s gdp is contributed by the service sector , accounts
for

Aging and declining population ,

Black market accounts for a major part of country’s output (shadow economy)
Along with Germany and France , account for more than half of EU’s GDP
GDP peaked around 2008, from then fell, lost 20% of its economic output
From 1960 , end of world war, the country has shown trend of sudden uprise , followed by
stagnation , negative growth and repeat .