What Type Of Economy Does Italy Have ?
The economy of Italy was once dependent on agriculture, but today, it has become an industrial economy. The economy of Italy is today considered to be a capitalistic economy.
During the pre World War II era, agriculture was the sole source of income for the people of Italy. After World War II, the scenario changed and industries began to boom. Several new factories and industrial districts were set up. Today Italy is one of the world’s major economies.
The main industries in Italy are travel and tourism, chemicals commerce, communications, automobile, fashion, food, footwear, and ceramics. Italy is home to popular automobile companies like Fiat, Lancia, Iveco, Bertone, Maserati, and Ferrari. Italy is considered to be the hub of international fashion with important fashion houses like Armani, Valentino, Versace, Dolce & Gabbana, Roberto Cavalli, Benetton, Prada, and Luxottica making the country their home. Besides this, food processing companies like Ferrero, Parmalat and Barilla Group are also present in the country.
Italy exports many things including fashion accessories, food, luxury cars, home appliances, firearms, aerospace technology, and yachts.
Industrialization has not completely overshadowed agriculture. It is still a means of livelihood for many people in rural Italy. Food grains, sugar beets, soybeans, meat, and dairy products are produced in the northern part of Italy; whereas fruits, vegetables and olive oil are produced in the south.
Italy does not have many natural resources, and has to import what it needs from other parts of the world. In spite of good economic growth, the country continues to face problems like budget deficits and unemployment. However, this is common in many economies and not just in Italy. The recession that started in 2008 has affected the economy of Italy adversely, but like many other countries, Italy too is slowly recovering from the ill-effects of this recent financial crisis.
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