International Market Development

International market development | Comprehensive analysis of Italian economy and market conditions

Author : Bozhou Marine

Update time : 2020-12-23 16:19:07

In this article, we mainly introduce the basic situation of the Italian market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, infrastructure construction, GDP, foreign exchange reserves, employment, prices, corporate income tax, personal tax rates, etc.

Introduction

The Republic of Italy (Italian: Repubblica Italiana), or Italy (Italian: Italia) for short, is a European country mainly composed of the Apennines in southern Europe and two islands in the Mediterranean, Sicily and Sardinia. The northern Alps borders France, Switzerland, Austria, and Slovenia, and its territory is surrounded by two miniature countries-San Marino and the Vatican.

Italy is a developed capitalist country, one of the four largest European economies, a founding member of the European Union and NATO, and a member of important international organizations such as the Schengen Convention, the Group of Eight and the United Nations. Italy has a total of 55 UNESCO World Heritage, along with China, is the country with the most world heritage. Italy is also a world leader in art and fashion. Milan is the economic and industrial center of Italy and the fashion capital of the world.

Capital

Colosseum images | Pixabay

Rome is the capital and largest city of Italy. It is also the political, economic, cultural and transportation center of the country. It has a history of more than 2500 years and is a world-famous historical and cultural city.

Rome’s GDP ranks first among Italian cities, accounting for 6.7% of Italy’s national GDP, and continues to grow at a rate of 4.4% per year, which is also at the forefront of the entire Italy. Rome is known as "all roads lead to Rome", which vividly shows that Rome is the transportation hub of Italy. It has railways and highways leading to all parts of the country. Rome is located in the center of the Mediterranean region and is also one of the centers of international air transport.

Main City

1.Venice

Venice is a famous tourist and industrial city in northeastern Italy and the capital of the Veneto region.

Also known as "Queen of the Adriatic", "Water Capital", "City of Bridges" and "City of Light", Venice is one of the most romantic cities in the world. The city of Venice covers 118 islands in the Venice Lagoon on the Adriatic coast of northeastern Italy and a neighboring peninsula. This saltwater lagoon is located along the coastline between the Po and Piave rivers.

Venice has the reputation of "born because of water, beautiful because of water, and thriving because of water", and enjoys the reputation of "water city", "water city", "hundred island city" and so on.

2. Rome

Rome (Roma) is the capital of Italy and the national political, economic, cultural and transportation center.

Rome is also the birthplace of ancient Rome and the brilliant culture of the world. It has a history of more than 2500 years. It is a world-famous historical and cultural city and the birthplace of the ancient Roman Empire. It is nicknamed the "eternal city" because of its long history of building. The city is located in the middle-western part of the Italian peninsula, on seven hills in the lower reaches of the Tiber River. The city center covers an area of more than 1,200 square kilometers. It is the city with the largest area and the most population in Italy and one of the most famous tourist destinations in the world.

3.Florence

Florence (Firenze) is a city in central Italy, the capital of Tuscany, located in the western foot basin of the central Apennines. From the fifteenth to the sixteenth centuries, Florence was the most famous art center in Europe. It was well-known throughout Europe for its fine arts and textiles. The birthplace of the European Renaissance and a world-famous cultural tourist attraction.

The industry is dominated by glassware, ceramics, high-end clothing and leather. Crafts such as gold and silver processing and artistic reproductions are also famous. The Florence International Contemporary Art Biennale, together with the Venice Biennale and Milan Triennale, are also known as the three major art exhibitions in Italy.

Florence is an extremely famous world art capital, European cultural center, birthplace of the European Renaissance movement, birthplace of opera, and a world-famous cultural tourist attraction. It belongs to the Tuscany region of Italy, the former capital of Italy and the cultural center of Italy. Florence is a transportation hub connecting northern and southern Italy with railway and road networks. The Arno River runs through the city and there are 7 bridges across the two banks.

4. Milan

Milan, known as Mediolanum (Mediolanium) in ancient Rome, is the second largest city in Italy. The capital of the province of Milan and the capital of Lombardy, is located on the Lombardy Plain.

Milan is an important transportation point in the south of Europe. It has a long history and is famous for its architecture, fashion, art, painting, opera, football, and tourism. The Milan metropolitan area accounts for 4.8% of Italy's GDP, and is the most densely populated and industrially developed region in Europe. Milan has a Mediterranean climate, with hot and dry summers and mild and rainy winters.

Milan is also one of the world's famous international metropolises, one of the eight metropolitan areas in the world, the most developed city in Italy and one of the four major economic centers in Europe (Paris, France, London, Germany, Berlin, Germany, Milan, Italy), one of the world's fashion and design It is the most influential city in the fashion industry, the world's historical and cultural city, the world's holy land of opera, and the world's art capital.

Milan Cathedral Image | Pixabay

  Jet Lag

Normal local time in Italy is 7 hours behind Beijing time. After subtracting 7 hours from Beijing time, it is the local normal time in Italy.

Italian Daylight Saving Time: from the last Sunday in March to the last Sunday in October each year. Daylight saving time is one hour more than normal time.

  Population and Ethnicity

60.24 million (data for 2019), mainly Italians.

  Language

The common language is Italian. French, German and Slovenian are spoken in ethnic minority areas such as Valle d’Aosta in the northwest, Trentino-Alto Adige and Friuli-Venezia Giulia in the northeast.

  Main Holiday

New Year's Day: January 1st;
Epiphany: January 6th;
Easter: the first Sunday after the first full moon after the vernal equinox;
Liberation Day: April 25th;
National Day: June 2nd;
The Assumption of Mary: August 15th;
Halloween: November 1st;
Victory Day: November 4th;
Christmas: December 25th.

Venice Carnival Images | Pixabay

  Natural resources

Italy is poor in natural resources, with only water power, geothermal, natural gas and other energy sources and mineral resources such as marble, clay, mercury, sulfur and a small amount of lead, aluminum, zinc and bauxite. Oil and natural gas production can only meet a small part of the domestic market demand, and 75% of energy supply and main industrial raw materials rely on foreign imports. Italy's traditionally important renewable energy sources are geothermal and hydropower. Geothermal power generation is the second largest in the world after the United States, and hydropower is the ninth largest in the world.

Italy has always attached great importance to the development of solar energy. In 2011, Italy was the country with the world's largest photovoltaic installed capacity (accounting for one-fourth of the world share). Italy's domestic renewable energy supply ratio has reached 25% of total energy demand. In 2008, renewable energy power generation A year-on-year increase of 20%.

  Main industry

Italy is a developed industrial country, the fourth largest economy in Europe and the eighth largest economy in the world. Small and medium-sized enterprises are developed and are known as the "Kingdom of Small and Medium-sized Enterprises". The number of small and medium-sized enterprises accounts for more than 98% of the total number of enterprises. Regional economic development is unbalanced. The north has developed industry and commerce, while the south is dominated by agriculture, and the economy is relatively backward.

1. Industry

The real economy is developed and it is the second largest manufacturing power in the EU after Germany. Various medium-tech consumer products and investment products occupy a considerable share of the world market, but high-tech products are relatively few.

The main industries are: petrochemicals, automobile manufacturing, household appliances, electronic instruments, metallurgy, machinery, equipment, textiles, clothing, tanning, furniture, food, beverages, tobacco, papermaking, publishing, printing, construction, etc.

Small and medium-sized enterprises have a high degree of specialization and strong adaptability. They are traditionally export-oriented. They are used in tanning, shoemaking, clothing, textiles, furniture, kitchen and bathroom, ceramic tiles, silk, jewelry, wine making, machinery, marble mining and machinery industries. The field has strong international competitiveness.

2. Agriculture, Forestry and Fishery

Agriculture, forestry, and fishery accounted for 2.4% of GDP. 56% of the land in the territory is agricultural land, and there are about 1.6 million agricultural enterprises. It is a traditional agricultural country and a strong agricultural country in the world. The quality of agricultural products such as olive oil, wine and tomato sauce is world-renowned.

The total agricultural output value in 2019 was 56.5 billion euros, ranking third in Europe. It is the country that has received the most certifications of "Protection of Origin", "Protection of Geographical Indications" and "Protection of Traditional Specialty Products" in the EU.

3. Service industry

The service industry has developed rapidly and has always maintained an upward momentum. It occupies an important position in the national economy. The output value accounts for 2/3 of the GDP. Most service industries are related to the marketing or supply of manufacturing products.

4. Tourism

The tourism industry is developed and it is the fifth largest tourist country in the world. Major tourist cities include Rome, Venice, Florence, etc. The tourism industry employs approximately 320,000 people.

  Infrastructure

The Italian transportation system is one of the most complete in the world. The total length of various domestic transportation systems is among the top 20 in the world, and the length of transportation routes per capita is among the top ten in the world.

Railway

The Italian railway network is dotted with more than 3,500 railway stations. There are many tunnels on the railway line, among which the Sempione Tunnel in Switzerland is 19.8 kilometers long and is the longest railway tunnel in the world. The total length of railways in Italy is 16,356 kilometers, which is equivalent to that of the United Kingdom, ranking third in Europe, accounting for 10.7% of the total length of European railways. Each year, it carries 473 million passengers and 87 million tons of cargo. In addition, Italy is also one of the earliest countries in the world to develop high-speed rail projects.

Highway

Italy's domestic transportation mainly relies on roads, and it is also the most satisfactory transportation category in the Italian transportation system. Its road system is one of the most developed and efficient road systems in Europe. Italy ranks third in road density per square kilometer in Europe, but its share of total length accounts for 16.2% of the total road network of 44 European countries. Among them, the national highway has a total length of 6,600 kilometers, ranking fourth in the European Union.

Water Transport

Italy has a well-developed water transport system, among which shipping is the dominant one. There are 148 large and small ports along the nearly 8,000-kilometer long coastline of Italy. The main port is the Port of Genoa (the second largest port in the Mediterranean) and the Port of Naples (the largest passenger port in Italy) Taranto Port (the largest military port in the Mediterranean). The annual passenger flow of the national ports is as high as 90 million, and the annual cargo throughput is 46.3 billion tons; it has 280 kilometers of docks and 550,000 ships; Italy's domestic water transport (canals and rivers) is not dominant, with a length of 1,500 kilometers.

Air Transport

The Italian air transport system is also relatively developed. The number of airlifts reached 100 million. The cargo is close to 800,000 tons. Italy’s air transport has excellent inherent conditions. The flight time to major capital cities in Europe and the Mediterranean is no more than 3 hours. The domestic routes are dense, and the flight time from the north to the south is no more than 1 hour. There are a total of 98 airports in Italy, of which the main airports are Fiumicino in Rome, Linate and Malpensa in Milan, and Caselle in Turin.

  Weak economic growth and a sharp decline in GDP in 2020

Italy's GDP growth rate trend chart over the years | TRADING ECONOMICS

According to statistics from the Italian Statistical Office, Italy achieved a total GDP of approximately US$2 trillion in 2019. Italy’s economic growth is weak, and the gap with the other three major European economies is growing. The total GDP is surpassed by Brazil and only ranks 9th in the world. It is worth mentioning that the actual GDP growth rate of Italy in 2019 was only 0.3%, a decline of 5 percentage points from 2018, and it was also the lowest growth rate among the four major European economies.

Affected by the epidemic, the GDP growth rate in 2020 will drop sharply. Italy's GDP in the first quarter of 2020 will fall by 5.4% year-on-year, and the second quarter will be down by 17.3% year-on-year. The European Commission predicts that Italy's GDP will fall by 11.2% in 2020.

In May 2020, the Italian government promulgated a “Renaissance Act” with a capital scale of 55 billion euros, aimed at helping individuals, families and businesses affected by the epidemic in trouble, and supporting and guiding the rapid restart of the economy.

 Foreign exchange reserves have grown rapidly in recent years

Trends of Italy's total foreign exchange reserves over the years | TRADING ECONOMICS

From 2018 to 2020, Italy's foreign exchange reserves have grown rapidly.

 The overall increase in the employed population, the unemployment rate remains high

Trends of the total employed population in Italy over the years | TRADING ECONOMICS

From 2010 to 2019, the overall employment population in Italy has shown an increase. Affected by the epidemic and blockade, the employment population will show a significant decrease in 2020.

Italy Unemployment Rate Volume Trend Chart | TRADING ECONOMICS

From 2011 to 2020, the Italian unemployment rate has remained at around 10% for a long time. According to CCTV News, 600,000 people lost their jobs during the epidemic in Italy, and 2.1 million families may fall into absolute poverty.

 Prices continue to rise and inflation rates fluctuate greatly

Italian Consumer Price Index Trend Chart | TRADING ECONOMICS

From 2011 to 2020, the Italian consumer price index CPI continued to rise.

Italy's inflation rate trend chart | TRADING ECONOMICS

From 2011 to 2020, Italy's inflation rate fluctuated greatly. In 2015 and 2016, it once fell to a negative number, and then fell to a negative number again in 2020, and the economic growth rate dropped significantly.

 Corporate income tax 24%

Italy's corporate income tax rates over the years | TRADING ECONOMICS

In 2020, the Italian corporate income tax rate is 24%.

 Personal income tax 43%

Italy's personal income tax rate over the years | TRADING ECONOMICS

In 2020, the Italian personal income tax rate is 43%.

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