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The Economies Of Italy And Austria - Research Paper Example

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Italy is a peninsula-shaped country that is bordered to the west and east by the Tyrrhenian Sea and the Adriatic respectively. To the north, Italy is bordered by Switzerland, Austria, France, and Slovenia…
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The Economies Of Italy And Austria
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The Economies Of Italy And Austria

Download file to see previous pages... The country has a total land area of 301,230 square kilometers, of which land covers about 294,020 square kilometers. The climate of the country is predominantly Mediterranean, characterized by alpines in far north while it’s hot and dry in the south (Signorini, 2001). The terrain of the country is typically rugged and mountainous although there are some plains and coastal lowlands. Among the resources with which Italy is endowed are marble, sulfur, mercury, potash, fish, and coal. Although Italy has some crude oil reserves, the levels have been reported to be dwindling. Agriculturally, Italy uses about 32% of its land for arable farming, 10% for permanent crops, and 17% for meadows and pastures. Forest and woodland cover in the country accounts for about 22% of the land with the remaining portion being placed under other uses (Signorini, 2001). Italy also has several environmental issues including air pollution in the form of sulfur dioxide emission, water and land pollution by agricultural and industrial effluents, acid rain and poor waste treatment among other pollutants (McDonald, 1998). Economically, Italy is a rather diverse country, having a per capita yield almost equaling that of France or Great Britain. Austria, one of Italy’s neighbors, is one of the countries with which Italy’s economy may be compared. With its capital at Vienna, Austria covers an area of approximately 83,857 square kilometers and has a population of 1.71 million and an annual population growth rate of 0.4%, according to 2011 estimates. The other major and populous cities of Austria are Klagenfurt, Graz, Salzburg, Linz, and Innsbruck. Just like Italy. Austria’s terrain is composed majorly of alpines in the northern highlands and lowlands to the east. Interestingly, the most widely spoken language in Austria is German, used by about 90% of the population. This paper, thus, explores the economy of Italy and Austria and how the two countries are managing the economic crisis. Italy’s Economy The diversity in the Italian economy is first evidence in the difference between the economy of the south and that of the northern parts of the country. For instance, in the northern parts of Italy, the economy is quite capitalistic with the private companies representing the total productivity of the region (The Economist (US), 1999). On the contrary, in the south, the economy is less developed than in the north, which is more industrialized. The south’s economy is therefore more agriculturally oriented than in the north. In addition, the southern parts of Italy also experience unemployment rates as high as 20%. Nevertheless, the entire economy of Italy has recorded considerable growth in recent times as indicated by the improved imports of maximum raw materials and about 75% of its energy needs (Signorini, 2001). In this regard, Italy’s economic growth has supported employment, labor flexibility, and the restructuring of the hitherto costly pension systems. There are certain prominent features of the economy of Italy that are worth mentioning. First among these features is the Gross Domestic Product (GDP), which stood at $1.826 trillion in 2011, making Italy’s economy the sixth richest in the world. The prosperity and economic development of Italy could also be attributed to the fast industrial pace in Italy. In addition, the per capita income of the country ...Download file to see next pagesRead More
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