Italy is a diversified industrial economy. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less developed agricultural south, with more than 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. For several years Italy has adopted budgets compliant with the requirements of the European Monetary Union (EMU); representatives of government, labor, and employers also agreed to an update of the 1993 "social pact," which has been widely credited with having brought Italy's inflation into conformity with EMU requirements. Italy must work to stimulate employment, promote wage flexibility, hold down the growth in pensions, and tackle the informal economy. Growth was 1.3% in 1999 and should edge up to 2.6% in 2000, led by investment and exports.GDP - real growth rate: 1.3% (1999 est.) GDP: (Gross Domestic Product)Purchasing power parity - $1.212 trillion (1999 est.) GDP - per capita:Purchasing power parity - $21,400 (1999 est.) GDP - composition by sector: Agriculture: 2.6% Industry: 31.6%Services: 65.8% (1998) Population:57,634,327 (July 2000 est.) Age structure: 0-14 years: 14% (male 4,220,973; female 3,977,962) 15-64 years: 68% (male 19,413,219; female 19,596,668)65 years and over: 18% (male 4,297,962; female 6,127,543) (2000 est.)Pop growth rate- .09% = 9,13 births/1,000 popExchange Rate- .9867 euros per US$1Italy is Mostly Free based on free choice, free enterprise, freedom from direct intervention by government, trade policy, property rights, black market, and wage and price controls.Italy is of very low risk when considering corrupt or poor political leadership, frequent changes in the form of government, political involvement of religious or military leaders, an unstable political system, conflict among races, religions, or ethnic groups, and poor relations with other countries.Italy is in the top five of the hig...
