Italy has a major advanced capitalist mixed economy, ranking as the third-largest in the Eurozone and the eighth-largest in the world. A founding member of the G7, the Eurozone and the OECD, it is regarded as one of the world's most industrialised nations and a leading country in world trade and exports. It is a highly developed country, with the world's 8th highest quality of life in 2005 and the 26th Human Development Index. The country is well known for its creative and innovative business, a large and competitive agricultural sector (with the world's largest wine production), and for its influential and high-quality automobile, machinery, food, design and fashion industry.
Italy is the world's sixth largest manufacturing country, characterised by a smaller number of global multinational corporations than other economies of comparable size and a large number of dynamic small and medium-sized enterprises, notoriously clustered in several industrial districts, which are the backbone of the Italian industry. This has produced a manufacturing sector often focused on the export of niche market and luxury products, that if on one side is less capable to compete on the quantity, on the other side is more capable of facing the competition from China and other emerging Asian economies based on lower labour costs, with higher quality products. Italy was the world's 7th largest exporter in 2016. Its closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total trade. Its largest EU trade partners, in order of market share, are Germany (12.9%), France (11.4%), and Spain (7.4%).
The automotive industry is a significant part of the Italian manufacturing sector, with over 144,000 firms and almost 485,000 employed people in 2015, and a contribution of 8.5% to Italian GDP. Fiat Chrysler Automobiles or FCA is currently the world's seventh-largest auto maker. The country boasts a wide range of acclaimed products, from very compact city cars to luxury supercars such as Maserati, Lamborghini, and Ferrari, which was rated the world's most powerful brand by Brand Finance.
Italy is part of the European single market which represents more than 500 million consumers. Several domestic commercial policies are determined by agreements among European Union (EU) members and by EU legislation. Italy introduced the common European currency, the Euro in 2002. It is a member of the Eurozone which represents around 330 million citizens. Its monetary policy is set by the European Central Bank.
Italy has been hit hard by the Financial crisis of 2007-08, that exacerbated the country's structural problems. Effectively, after a strong GDP growth of 5-6% per year from the 1950s to the early 1970s, and a progressive slowdown in the 1980-90s, the country virtually stagnated in the 2000s. The political efforts to revive growth with massive government spending eventually produced a severe rise in public debt, that stood at over 131.8% of GDP in 2017, ranking second in the EU only after the Greek one. For all that, the largest chunk of Italian public debt is owned by national subjects, a major difference between Italy and Greece, and the level of household debt is much lower than the OECD average. A gaping North-South divide is a major factor of socio-economic weakness. It can be noted by the huge difference in statistical income between the northern and southern regions and municipalities. The richest province, Alto Adige-South Tyrol, earns 152% of the national GDP per capita, while the poorest region, Calabria, 61%. The unemployment rate (11.1%) stands slightly above the Eurozone average, but the disaggregated figure is 6.6% in the North and 19.2% in the South. The youth unemployment rate (31.7% in March 2018) is extremely high compared to EU standards. Italy has a strong cooperative sector, with the largest share of the population (4.5%) employed by a cooperative in the EU.
The Altare della Patria in Rome, national monument of Italy dedicated to King Victor Emmanuel II, holds the tomb of the Unknown Soldier since the end of World War I following an idea of General Giulio Douheto.
Italy is part of a monetary union, the Eurozone (dark blue) and of the EU single market. A Ferrari 488. Italy maintains a large automotive industry. It is world's seventh largest exporter of goods.
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