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telephone: [39] (6) 46741
FAX: [39] (6) 4882672
consulate(s) general: Florence, Milan, Naples

Flag: three equal vertical bands of green (hoist side), white, and
red; similar to the flag of Ireland, which is longer and is green
(hoist side), white, and orange; also similar to the flag of the Cote
d'Ivoire, which has the colors reversed - orange (hoist side), white,
and green

@Italy:Economy

Overview: Since World War II the Italian economy has changed from one
based on agriculture into a ranking industrial economy, with
approximately the same total and per capita output as France and the
UK. The country is still divided into a developed industrial north,
dominated by private companies, and an undeveloped agricultural south,
dominated by large public enterprises. Services account for 48% of
GDP, industry 35%, agriculture 4%, and public administration 13%. Most
raw materials needed by industry and over 75% of energy requirements
must be imported. After growing at an average annual rate of 3% in
1983-90, growth slowed to about 1% in 1991 and 1992, fell by 0.7% in
1993, and recovered to 2% in 1994. In the second half of 1992, Rome
became unsettled by the prospect of not qualifying to participate in
EU plans for economic and monetary union later in the decade; thus it
finally began to address its huge fiscal imbalances. Subsequently, the
government has adopted fairly stringent budgets, 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 were forced to withdraw the
lira from the European monetary system in September 1992 when it came
under extreme pressure in currency markets. For the 1990s, Italy faces
the problems of pushing ahead with fiscal reform, refurbishing a
tottering communications system, curbing pollution in major industrial
centers, and adjusting to the new competitive forces accompanying the
ongoing expansion and economic integration of the European Union.

National product: GDP - purchasing power parity - $998.9 billion (1994
est.)

National product real growth rate: 2.2% (1994 est.)

National product per capita: $17,180 (1994 est.)

Inflation rate (consumer prices): 3.9% (1994)

Unemployment rate: 12.2% (January 1995)

Budget:
revenues: $339 billion
expenditures: $431 billion, including capital expenditures of $N