GDP Contribution of

Services in Italy
Report

Source of information: internet

Submitted by:

Zahra Ali

Shiza Khan

Submitted to

Wajhia Faisal
Introduction of Italy:
Italy, officially the Italian Republic, is located on the Italian Peninsula in Southern Europe, and on the two
largest islands in the Mediterranean Sea, Sicily and Sardinia. Italy shares its northern Alpine boundary with
France, Switzerland, Austria and Slovenia. The Capital of Italy is Rome. Italy is subdivided into 20 regions. It is
further divided into 109 provinces (province) and 8,101 municipalities.

It is a democratic republic and a developed country with the 8th-highest Quality-of-life index rating in
the world. It is a founding member of what is now the European Union (having signed the Treaty of Rome in
1957), and a founding member of the North Atlantic Treaty Organization (NATO). It is a member of the G8
(having the world's 7th largest nominal GDP), Organization for Economic Co-operation and Development
(OECD), World Trade Organization (WTO), the Council of Europe, the Western European Union. It has the
world's 7th largest defense budget and shares NATO's nuclear weapons. On 1 January 2010, Italy began a two
year term as a non-permanent member of the United Nations Security Council. Literacy Rate 98.4% (male:
98.8%, female: 98%) as per 2001 census.

Population:
In October 2010, the Italian population surpassed 59.7 million, Italy currently has the fourth largest
population in the European Union, and the 23rd largest population worldwide. Italy's population density at
196.1 persons per kilometer is the fifth highest in the European Union.

The population as per July 2008 estimate is 58,145,321

ECONOMY:
The economy of Italy has changed dramatically since the end of World War II. From an agriculturally based
economy, it has developed into an industrial country ranked by both the World Bank and the International
Monetary Fund as the world's sixth largest economy in USD exchange-rate terms and either the ninth (World
Bank) or tenth (IMF and the CIA World Fact book) largest in terms of purchasing power parity (PPP).

The country belongs to the Group of eight (G8) industrialized nations; it is a member of the European Union
and the OECD. This capitalistic economy remains divided into a developed industrial north, dominated by
private companies, and a less-developed, welfare-dependent, agricultural south.

The country's main economic strength has been its large base of small- and medium-sized companies. Italian
industry is envied for its advanced design and style, which often capitalizes on the country's formidable artistic
patrimony.
GDP Contribution in country:
In 2010 Italy’s gross domestic product (GDP) was estimated at $1.782 trillion, or about $30,073.50 per
capita. GDP is a measure of the total value of the goods and services a country produces. Industry (including
manufacturing, mining, and construction) contributed 27 percent to the GDP, services (including wholesale and
trade(10%), banking(12%), and government (14.5%) ,transportation (5%), educational and health
services(11%), professional business services(10.5%) and other services(8% ) 71 percent, and agriculture
(including forestry and fishing) a scant 2 percent. Italy essentially has a private-enterprise economy, although
the government formerly held a controlling interest in a number of large commercial and manufacturing
enterprises, such as the oil industry (through the Italian state petroleum company) and the principal
transportation and telecommunication systems. And other some GDP Factor as discussed below :

GDP (official exchange rate in 2010 is $2.037 trillion. The GDP of real growth rate is 1.1 % in 2010
and the coutr y comparison of the world is 177 in the world and in 2009 real the growth rate of the GDP - 5.1%.
GDP-per capita (ppp) is 30,700 in 2010 and the country comparison in the world is 43. Labor force in Italy is
approximately 25.05 million in 2010 and the country comparison in the world 23. Unemployment rate of Italy is
8.4% in 2010 and country comparison in the world is in 97TH position and 7.8% rate in 2009 .household income
or consumption by the percentage share is lowest to 10%:2.3% and highest to 10%:26.8% in 2000.inflation rate
(consumer prices) in 2010 is 1.4% and ranking in the world is in 33rd position and in 2009 the inflation rate is
approximately 0.8% . central bank discount rate is up to 1.75% till December 31 2009 and 3% in 2008.this is
the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the
euro area and commercial bank lending rate is 10.26% in December 31st 2009 and 11.31% in December 31st
2008. The main Agriculture product are fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain,
olives; beef, dairy products; fish and the industries of the Italy are tourism, machinery, iron and steel, chemicals,
food processing, textiles, motor vehicles, clothing, footwear, ceramics and the industry production growth rate
is about 0.5%.

The exports of the Italian country play an vital role in the GDP and the total exports are round of 458.4
billion in 2010 and 407.2 billion in 2009 , export commodities are engineering products, textiles and clothing,
production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals,
and nonferrous metals and the exporting partners of the Italy is mostly are European countries Germany 12.6%
France 11.57%, US 5.92%, Spain 5.69%, UK 5.13%, Switzerland 4.69% (2009).imports is about 459.7 billion
in 2010 and 403.9 billion in 2009 some of the commodities which Italy import from their partner countries like
engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles
and clothing; food, beverages, and tobacco and import partner are Germany 16.68%, France 8.82%, China
6.53%, Netherlands 5.63%, Spain 4.3%, Russia 4.12%, Belgium 4.08% in 2009.
Pie Chart of GDP:

Contributions of Service Industries to Italy. Gross Domestic

Product
agriculture

manufacturing,mining, construction

banking and finacal insitution

Goverment

transpotation

Educational & health services

professional bussiness services

Other services

Conclusion: