second half of 1992, Rome became unsettled by the prospect of not qualifying
to participate in EC plans for economic and monetary union later in the
decade; thus it finally began to address its huge fiscal imbalances. Thanks
to the determination of Prime Minister AMATO, the government adopted a
fairly stringent budget for 1993, abandoned its highly inflationary wage
indexation system, and started to scale back its extremely generous social
welfare programs, including pension and health care benefits. Monetary
officials, who were forced to withdraw the lira from the European monetary
system in September 1992 when it came under extreme pressure in currency
markets, remain committed to bringing the currency back into the grid as
soon as conditions warrant. For the 1990s, Italy faces the problems of
refurbishing a tottering communications system, curbing pollution in major
industrial centers, and adjusting to the new competitive forces accompanying
the ongoing economic integration of the European Community.
National product:
GDP - purchasing power equivalent - $1.012 trillion (1992)
National product real growth rate:
0.9% (1992)
National product per capita:
$17,500 (1992)
Inflation rate (consumer prices):
5.4% (1992)
Unemployment rate:
11% (1992 est.)
Budget:
revenues $447 billion; expenditures $581 billion, including capital
expenditures of $46 billion (1992 est.)
Exports:
$168.8 million (f.o.b., 1991)
commodities:
textiles, wearing apparel, metals, production machinery, motor vehicles,
transportation equipment, chemicals, other
partners:
EC 58.3%, US 6.8%, OPEC 5.1% (1992)
Imports:
$169.7 million (f.o.b., 1991)
commodities:
petroleum, industrial machinery, chemicals, metals, food, agricultural
products
partners:
EC 58.8%, OPEC 6.1%, US 5.5% (1992)
External debt:
$42 billion (September 1992)
Industrial production:
growth rate -0.5% (1992 est.); accounts for almost 35% of GDP
Electricity:
58,000,000 kW capacity; 235,000 million kWh produced, 4,060 kWh per capita
(1992)

*Italy, Economy

Industries:
machinery, iron and steel, chemicals, food processing, textiles, motor
vehicles, clothing, footwear, ceramics
Agriculture:
accounts for about 4% of GDP and about 10% of the work force;
self-sufficient in foods other than meat, dairy products, and cereals;
principal crops - fruits, vegetables, grapes, potatoes, sugar beets,
soy