Economy of Italy

partners, in order of market share, are Germany (12.9%), France (11.4%), and Spain (7.4%). Finally, tourism is one of the fastest growing and profitable sectors of the national economy: with 43.6 million international tourist arrivals and total receipts estimated at $38.8 billion in 2010, Italy is both the fifth most visited country and highest tourism earner in the world.

Despite these important achievements, the Italian economy today suffers from many and relevant problems. After a strong GDP growth of 5–6% per year from the 1950s to the early 1970s, and a progressive slowdown in the 1980s and 1990s, the last decade's average annual growth rates poorly performed at 1.23% in comparison to an average EU annual growth rate of 2.28%. The stagnation in economic growth, and the political efforts to revive it with massive government spending from the 1980s onwards, eventually produced a severe rise in public debt. According to the EU's statistics body Eurostat, Italian public debt stood at 116% of GDP in 2010, ranking as the second biggest debt ratio after Greece (with 126.8%).

However, the biggest chunk of Italian public debt is owned by national subjects, a major difference between Italy and Greece. In addition, Italian living standards have a considerable north-south divide. The average GDP per capita in the north exceeds by far the EU average, while many regions of Southern Italy are dramatically below. Italy has often been referred the sick man of Europe, characterised by economic stagnation, political instability and problems in pursuing reform programs.

More specifically, Italy suffers from structural weaknesses due to its geographical conformation and the lack of raw materials and energy resources: in 2006 the country imported more than 86% of its total energy consumption (99.7% of the solid fuels, 92.5% of oil, 91.2% of natural gas and 15% of electricity). The Italian economy is weakened by the lack of infrastructure development, market