has the colors reversed - orange (hoist side),
white, and green
note: inspired by the French flag brought to Italy by Napoleon in
1797

Economy Italy

Economy - overview:
Italy has a diversified industrial economy with roughly the same
total and per capita output as France and the UK. This capitalistic
economy remains divided into a developed industrial north, dominated
by private companies, and a less developed, welfare-dependent
agricultural south, with 20% unemployment. Most raw materials needed
by industry and more than 75% of energy requirements are imported.
Over the past decade, Italy has pursued a tight fiscal policy in
order to meet the requirements of the Economic and Monetary Unions
and has benefited from lower interest and inflation rates. The
current government has enacted numerous short-term reforms aimed at
improving competitiveness and long-term growth. Italy has moved
slowly, however, on implementing needed structural reforms, such as
lightening the high tax burden and overhauling Italy's rigid labor
market and over-generous pension system, because of the current
economic slowdown and opposition from labor unions. But the
leadership faces a severe economic constraint: the budget has
breached the 3% EU deficit ceiling.

GDP (purchasing power parity):
$1.609 trillion (2004 est.)

GDP - real growth rate:
1.3% (2004 est.)

GDP - per capita:
purchasing power parity - $27,700 (2004 est.)

GDP - composition by sector:
agriculture: 2.3%
industry: 28.8%
services: 68.9% (2004 est.)

Labor force:
24.27 million (2004 est.)

Labor force - by occupation:
agriculture 5%, industry 32%, services 63% (2001)

Unemployment rate:
8.6% (2004 est.)

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: 2.1%
highest 10%: 26.6% (2000)

Distribution of family income - Gini index:
27.3 (1995)

Inflation rate (consumer prices):
2.3% (2004 est.)

Investment (gross fixed):
19.3% of GDP (2004 est.)

Budget:
revenues: $768.9 billion
expenditures: $820.1 billion, including capital expenditures of NA
(2004 est.)

Public debt:
105.6% of GDP (2004 est.)

Agriculture - products:
fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain,
olives; beef, dairy products; fish

Industries:
tourism, machinery, iron and steel, chemicals, food processing,
textiles,