The Italian economy has faced a great number of changes since the World War II. It was an agriculture-based economy in the past that changed into a developed industrial state. This country is ranked fifth-largest industrial economy of the world. This country belongs to the Group of Eight. The abbreviation used for representing this group is G-8. Italy is a member of OECD (Organization for Economic Cooperation and Development) and the European Union. With few natural resources and unsuited land for farming, Italy is a net food importer. Italy lacks substantial deposits for oil, coal and iron. The most important mineral resources of this country include the gas reserves at offshore Adriatic and Po Valley. These reserves have grown in the previous few years.
The majority of the raw material utilized in the country and the energy sources are imported from other nations. More than eighty percent of the energy sources of this country are imported. The economic strength of Italy is improving, especially in small and medium-sized companies. The major industries of this fifth largest industrial country include motor vehicle, chemical, machinery, pharmaceutical, fashion, electric goods and clothing.
Italy is facing a lot of economic problems, these days. Italy is grappling with the budget deficits and high debts. It joined the European Union in the year 1998. It is obligatory for this country to keep its budget deficit well under three percent. It has been difficult for the Italian government to decrease the budget deficit below the required level. The economic situation is likely to allow the rapid decrease in debt. The current economic downfall is expected to decrease the possibility of that from happening. The budget deficit is possible to rise above the level of three percent. The economic growth in Italy has been slow, during the previous decade. The closest trade relations of this country are observed to be with other European Union countries. Many factors are involved in the downfall of Italian economy!