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The economic crisis of 2007-2011 had a negative impact to Italy’s economy. During this crisis, the economic growth went down by 6.74%. This left Italy in a huge budget deficit. Italian debt rating was quite poor by 2011 attributed to the government’s inability to make effective decisions on national issues. However, this changed over that period when the government adopted austerity measures that led to a budget deficit of only 1.5% in 2011.
According to the International Monetary Fund, measured by nominal gross domestic product, Italy’s economy is the seventh largest in the world and fourth largest in Europe preceded by Germany, France and United Kingdom (OECD 127). This is despite its late industrialization and the current economic growth being almost stagnant. Most economic growth has been contributed by industrialization, which developed rapidly in the 1950’s. There is also practice of agriculture, which contributes about 2% of its growth domestic product, and tourism is the most important industry (Rodgers & Simon 134).
Industries in Italy are diversified ranging and mostly based on the North in Milan, Turin and Genoa. Over half of the labor force is employed in the manufacturing industry that deals with chemicals, food, clothing, footwear, motor vehicles and ceramics among others OECD 34). The rest are employed in agriculture that deals in livestock like goats, cattle sheep and pigs together with plants like soybean, grapes, potatoes and sugar beets. Most of these industries were state owned but recently, the trend is changing to privatization.
Most scholars and analysts suggest that Italy’s economy should have been above other countries like China or even Japan. Since this is not the case, political instabilities and the problems discussed above in the history of the economy as discussed are some of
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Italy is a rather homogenous country both linguistically and religiously. However, it is quite diverse politically, culturally, and economically (McDonald, 1998). Italy’s population density ranks fifth-highest in Europe, with the largest minority group being the German-speaking people of the Bolzano Province and the Slovenes around Trieste.
The renowned Webster’s dictionary defines culture as: “The totality of socially transmitted behavior patterns, arts, beliefs, institutions, and all other products of human work and thought typical of a population or community at a given time.” (NPS, 2005) It might appear to the naked eye that the culture of two nations on earth are similar, while in nature and characteristics they are actually diametrically opposite, such is the case when two cultures of the “West” are taken into account, the Italians and the English, both the cultures dwell under the western umbrella however when studies to the roots, below the surface, they are extremely different.
The nation’s credit rating has been downgraded, bond prices have become unsustainable and austerity measures are in the offing. The southern region of the country has the additional problems of illegal immigration, drug smuggling and organized crime in addition to relative underdevelopment both in the industrial sector and in technical skills of its populace.
It would take another war to annex Venice, and the end of the First World War for Italy to take into its fold the Trieste and Trento territories. The literature notes further, that while political integration was a sure thing, market forces and the varying economic fundamentals of the different Italian regions meant that actual economic integration took longer to accomplish, and the diffusion of economic growth among regions in Italy, and in other parts of the Europe, likewise took a long time to happen (Missiaia1-3).
Since the 1880’s many Italians emigrated from Italy to America in search of a better life and more opportunity like other immigrants. Many of these immigrants would eventually come to lead prosperous lives equivalent to many Americans, establishing roots throughout the nation.
However, high political and social instabilities in the country hamper this growth. Coupled with external environmental influences facing the country, economic recovery is yet to achieve its full growth. According to reports by The World Bank (n.p.), the economy in 2012 grew at the rate of 3.6 per cent, up from a 1.9 per cent in 2011.
This society is situated at the lower side of Manhattan. At this juncture, one should acknowledge that fact that little Italy is different from the Italian Harlem, with the later situated in upper Manhattan. Both these Italy’s are populated by Italian Americans.
In fact, some of them were in dire need of bail-outs as an intervention to the teething realities that their fortunes of economic performance presented. Low competitiveness for the countries acted as a
The report issued by Standard and Poor Credit Services states that “"The downgrade reflects our view of Italys weakening economic growth prospects," S&P said. "Italys fragile governing coalition and policy differences within parliament will likely continue to
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