Editing Economy of Italy (section)

== History ==
{{Main|Economic history of Italy|Economic history of pre-unitarian Italy}}
[[File:Motore a combustione interna Barsanti - Matteucci - Museo scienza tecnologia Milano 08149 2012.jpg|thumb|upright|left|The [[Barsanti-Matteucci engine]], the first proper internal combustion engine]]
The Italian Renaissance was remarkable in economic development. [[Venice]] and [[Genoa]] were the trade pioneers, first as [[maritime republics]] and then as regional states, followed by [[Milan]], [[Florence]], and the rest of northern Italy. Reasons for their early development are for example the relative military safety of Venetian lagoons, the high population density and the institutional structure which inspired entrepreneurs.<ref>{{cite book|author=Baten, Jörg |title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=44|isbn=9781107507180}}</ref> The Republic of [[Venice]] was the first real [[international financial center]], which slowly emerged from the 9th century to its peak in the 15th century.<ref name=Coispeau2016>{{Cite book|url=https://books.google.com/books?id=Yor4DAAAQBAJ|title=Finance Masters: A Brief History of International Financial Centers in the Last Millennium|last=Coispeau|first=Olivier|date=2016-08-10|publisher=World Scientific|isbn=9789813108844|language=en|access-date=14 December 2022|archive-date=20 February 2024|archive-url=https://web.archive.org/web/20240220065210/https://books.google.com/books?id=Yor4DAAAQBAJ|url-status=live}}</ref> Tradeable [[Bond (finance)|bonds]] as a commonly used type of security, were invented by the [[Italian city-states]] (such as Venice and [[Genoa]]) of the late [[medieval]] and early [[Renaissance]] periods.

After 1600 Italy experienced an economic catastrophe. In 1600 Northern and Central Italy comprised one of the most advanced industrial areas of Europe. There was an exceptionally high standard of living.<ref>{{Cite journal |last1=Rota |first1=Mauro |last2=Weisdorf |first2=Jacob |date=December 2020 |title=Italy and the Little Divergence in Wages and Prices: New Data, New Results |journal=The Journal of Economic History |language=en |volume=80 |issue=4 |pages=931–960 |doi=10.1017/S0022050720000467 |s2cid=219359647 |issn=0022-0507|doi-access=free }}</ref> By 1870 Italy was an economically backward and depressed area; its industrial structure had almost collapsed, its population was too high for its resources, its economy had become primarily agricultural. Wars, political fractionalization, limited fiscal capacity and the shift of world trade to north-western Europe and the Americas were key factors.<ref>Carlo M. Cipolla, "The Decline of Italy: The Case of a Fully Matured Economy." abFZxxxx ''Economic History Review'' 5#2 1952, pp. 178–187. [https://www.jstor.org/stable/2591055 online] {{Webarchive|url=https://web.archive.org/web/20220920180823/https://www.jstor.org/stable/2591055 |date=20 September 2022 }}</ref><ref>{{cite book|author=Baten, Jörg |title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=45|isbn=9781107507180}}</ref>

The economic history of Italy after 1861 can be divided in three main phases:<ref name="toniolo">{{cite book|editor-last1=Toniolo|editor-first1=Gianni|title=The Oxford handbook of the Italian economy since unification|date=2013|publisher=Oxford University Press|location=New York, NY|isbn=9780199936694}}</ref> an initial period of struggle after the unification of the country, characterised by high emigration and stagnant growth; a central period of robust catch-up from the 1890s to the 1980s, interrupted by the [[Great Depression]] of the 1930s and the two world wars; and a final period of sluggish growth that has been exacerbated by a double-dip recession following the 2008 global financial crush, and from which the country is slowly reemerging only in recent years.

=== Age of Industrialization ===

[[File:Terni - le Acciaierie 1912.jpg|thumb|left|[[Terni]] steel mills in 1912]]

Prior to unification, the economy of the many Italian statelets was overwhelmingly agrarian; however, the agricultural surplus produced what historians call a "pre-industrial" transformation in North-western Italy starting from the 1820s,<ref>{{cite book|last1=Riall|first1=Lucy|title=The Italian risorgimento : state, society, and national unification|url=https://archive.org/details/italianrisorgime00rial|url-access=limited|date=1999|publisher=Routledge|location=London [u.a.]|isbn=978-0415057752|page=[https://archive.org/details/italianrisorgime00rial/page/n71 53]|edition=Repr.}}</ref> that led to a diffuse, if mostly artisanal, concentration of manufacturing activities, especially in [[Piedmont-Sardinia]] under the liberal rule of the [[Count of Cavour]].<ref>{{cite book|last1=Killinger|first1=Charles L.|title=The history of Italy|date=2002|publisher=Greenwood Press|location=Westport, Conn. [u.a.]|isbn=978-0313314834|page=[https://archive.org/details/historyofitaly00kill/page/112 112]|edition=[Online-Ausg.]|url=https://archive.org/details/historyofitaly00kill/page/112}}</ref>
[[File:Alessandro Cruto Museo Scienza e Tecnologia Milano.tif|thumb|[[Alessandro Cruto]], creator of the first practical long-lasting incandescent [[Light Bulb|light bulb]]<ref>{{Cite web|url=https://ilglobo.com.au/news/33135/alessandro-crutos-incandescent-light-bulb/|title=Alessandro Cruto's incandescent light bulb — Italianmedia|website=ilglobo.com.au|access-date=2019-12-16}}</ref>|224x224px]]

After the [[Proclamation of the Kingdom of Italy|birth of the unified Kingdom of Italy]] in 1861, there was a deep consciousness in the ruling class of the new country's backwardness, given that the per capita GDP expressed in PPS terms was roughly half of that of Britain and about 25% less than that of France and Germany.<ref name="toniolo"/> During the 1860s and 1870s, the manufacturing activity was backward and small-scale, while the oversized agrarian sector was the backbone of the national economy. The country lacked large coal and iron deposits<ref>{{cite book|last1=Hildebrand|first1=George Herbert|title=Growth and Structure in the Economy of Modern Italy|url=https://archive.org/details/growthstructurei0000hild|url-access=registration|date=1965|publisher=Harvard University Press|location=Cambridge, Massachusetts|pages=[https://archive.org/details/growthstructurei0000hild/page/307 307–309]}}</ref> and the population was largely illiterate. In the 1880s, a severe [[Italian farm crisis|farm crisis]] led to the introduction of more modern farming techniques in the [[Po valley]],<ref>{{cite book|last1=Zamagni|first1=Vera|title=The economic history of Italy, 1860–1990: from the periphery to the centre|date=1993|publisher=Clarendon Press|location=[New York]|isbn=978-0198287735|page=64|edition=Repr.}}</ref> while from 1878 to 1887 [[protectionist]] policies were introduced with the aim to establish a heavy industry base.<ref>{{cite book|last1=Kemp|first1=Tom|title=Industrialization in nineteenth-century Europe|date=1985|publisher=Longman|location=London|isbn=978-0582493841|edition=2nd|url-access=registration|url=https://archive.org/details/industrializatio0000kemp}}</ref> Some large steel and iron works soon clustered around areas of high [[hydropower]] potential, notably the Alpine foothills and Umbria in central Italy, while [[Turin]] and [[Milan]] led a textile, chemical, engineering and banking boom and [[Genoa]] captured civil and military [[shipbuilding]].<ref>{{cite web |url=https://www.bancaditalia.it/pubblicazioni/quaderni-storia/2010-0004/en_Qua_Storia_eco_n4.pdf?language_id=1 |title=Through the Magnifying Glass: Provincial Aspects of Industrial Growth in Post-Unification Italy |last1=Ciccarelli |first1=Carlo |last2=Fenoaltea |first2=Stefano |date=July 2010 |publisher=[[Banca d'Italia]] |page=4 |format=PDF |access-date=9 February 2015 |archive-date=9 February 2015 |archive-url=https://web.archive.org/web/20150209031459/https://www.bancaditalia.it/pubblicazioni/quaderni-storia/2010-0004/en_Qua_Storia_eco_n4.pdf?language_id=1 |url-status=live }}</ref>

However, the diffusion of industrialisation that characterised the northwestern area of the country largely excluded Venetia and, especially, the [[Southern Italy|South]]. The resulting [[Italian diaspora]] concerned up to 26 million Italians, the most part in the years between 1880 and 1914; by many scholars, it is considered the biggest mass migration of contemporary times.<ref>{{cite book |last1=Cohen |first1=Robin |year=1995 |title=The Cambridge Survey of World Migration |url=https://archive.org/details/cambridgesurveyo00robi |url-access=registration |location=[[Cambridge]] |publisher=[[Cambridge University Press]] |page=[https://archive.org/details/cambridgesurveyo00robi/page/114 114] |isbn=978-0-521-44405-7 |access-date=8 February 2015}}</ref> During the [[World War I|Great War]], the still frail Italian state successfully fought a modern war, being able of arming and training some 5 million recruits.<ref>{{cite book |last1=Clark |first1=Martin |year=1984 |title=Modern Italy, 1871–1982 |url=https://books.google.com/books?id=aXpoAAAAMAAJ&pg=PA186 |location=New York City |publisher=[[Longman]] |page=186 |isbn=978-0-582-48361-3 |access-date=8 February 2015}}</ref> But this result came at a terrible cost: by the end of the war, Italy had lost 700,000 soldiers and had a ballooning sovereign debt amounting to billions of [[Italian lira|lira]].

=== Fascist regime ===
{{Main|Economy of Italy under fascism}}

[[File:Mussolini visiting Fiat, 1932.jpg|thumb|left|[[Benito Mussolini]] giving a speech at the [[Fiat]] [[Lingotto]] factory in Turin, 1932]]

Italy emerged from [[World War I]] in a poor and weakened condition. The [[National Fascist Party]] of [[Benito Mussolini]] came to power in 1922, at the end of a period of social unrest. However, once Mussolini acquired a firmer hold of power, laissez-faire and free trade were progressively abandoned in favour of government intervention and [[protectionism]].<ref name="knight2003">{{cite book |last=Knight |first=Patricia |year=2003 |title=Mussolini and Fascism |url=https://books.google.com/books?id=LrPb77YGb9gC&pg=PA64 |location=New York City |publisher=[[Routledge]] |pages=64–65 |isbn=978-0-415-27921-5 |access-date=8 February 2015}}</ref>

In 1929, Italy was hit hard by the [[Great Depression]].<ref>{{cite book |last=Welk |first=William G.|year=1938 |title=Fascist Economy Policy: An Analysis of Italy's Economic Experiment |url=https://books.google.com/books?id=hqcrAQAAMAAJ&pg=PA166 |location=[[Cambridge]] |publisher=[[Harvard University Press]] |page=166 |access-date=8 February 2015}}</ref> In order to deal with the crisis, the Fascist government nationalized the holdings of large banks which had accrued significant industrial securities, establishing the [[Istituto per la Ricostruzione Industriale]].<ref>{{cite book |last=Morgan |first=Philip |year=2003 |title=Italian Fascism, 1915–1945 |url=https://books.google.com/books?id=D9gcBQAAQBAJ&pg=PA160 |location=[[Basingstoke]] |publisher=[[Macmillan Publishers]] |page=160 |isbn=978-0-333-94998-6 |access-date=8 February 2015 }}{{Dead link|date=February 2024 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> A number of mixed entities were formed, whose purpose was to bring together representatives of the government and of the major businesses. These representatives discussed economic policy and manipulated prices and wages so as to satisfy both the wishes of the government and the wishes of business.<ref name="knight2003"/>

This economic model based on a partnership between government and business was soon extended to the political sphere, in what came to be known as [[corporatism]]. At the same time, the aggressive foreign policy of Mussolini led to increasing military expenditure. After the invasion of [[Second Italo-Abyssinian War|Ethiopia]], Italy intervened to support [[Francisco Franco|Franco]]'s nationalists in the [[Spanish Civil War]]. By 1939, Italy had the highest percentage of state-owned enterprises after the [[Soviet Union]].<ref name="knight2003"/>

Italy's involvement in [[World War II]] as a member of the [[Axis powers]] required the establishment of a [[war economy]]. The [[Allied invasion of Italy]] in 1943 eventually caused the Italian political structure – and the economy – to rapidly collapse. The Allies, on the one hand, and the Germans on the other, took over the administration of the areas of Italy under their control. By the end of the war, Italian per capita income was at its lowest point since the beginning of the 20th century.<ref>{{cite book |last=Lyttelton |first=Adrian |year=2002 |title=Liberal and Fascist Italy, 1900–1945 |url=https://books.google.com/books?id=D9gcBQAAQBAJ&pg=PA160 |location=[[Oxford]] |publisher=[[Oxford University Press]] |page=13 |isbn=978-0-198-73198-6 |access-date=8 February 2015 }}{{Dead link|date=February 2024 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

=== Post-war economic miracle ===
{{Main|Italian economic miracle}}
[[File:1962 Fiat 500 -- 2012 DC 2.JPG|thumbnail|The [[Fiat 500]], launched in 1957, is considered a symbol of Italy's postwar economic miracle.<ref>{{cite news |last=Tagliabue |first=John |date=11 August 2007 |url=https://www.nytimes.com/2007/08/11/business/worldbusiness/11fiat.html |title=Italian Pride Is Revived in a Tiny Fiat |newspaper=[[The New York Times]] |access-date=8 February 2015 }}</ref>]]
[[File:Olivetti Programma 101 - Museo scienza e tecnologia Milano.jpg|thumbnail|[[Programma 101]], developed in 1965 by [[Olivetti]] is considered one of the first [[Programmable calculator|programmable calculators]] ever and was an economic success internationally.<ref>{{Cite web
 | title= 2008/107/1 Computer, Programma 101, and documents (3), plastic / metal / paper / electronic components, hardware architect Pier Giorgio Perotto, designed by Mario Bellini, made by Olivetti, Italy, 1965–1971
 | website= www.powerhousemuseum.com
 | language= en
 | url= http://www.powerhousemuseum.com/collection/database/?irn=378406
 | access-date= 2016-03-20
}}
</ref><ref name=CyberHeroes>
{{cite web
 | title= Cyber Heroes: Camillo Olivetti
 | publisher= Hive Mind
 | url= http://wvegter.hivemind.net/abacus/CyberHeroes/Olivetti.htm
 | access-date= 2010-11-07
}}
</ref>]]

After the end of World War II, Italy was in rubble and occupied by foreign armies, a condition that worsened the chronic development gap among the more advanced European economies. However, the new geopolitical logic of the [[Cold War]] made possible that the former enemy Italy, a hinge country between Western Europe and the [[Mediterranean]], and now a new, fragile democracy threatened by the [[NATO]] occupation forces, the proximity of the [[Iron Curtain]] and the presence of a strong [[Italian Communist Party|Communist party]],<ref>{{cite book |last=Hogan |first=Michael J.| title=The Marshall Plan: America, Britain, and the reconstruction of Western Europe, 1947–1952 |url=https://archive.org/details/marshallplanamer00hoga_388 |url-access=limited |publisher=[[Cambridge University Press]] |year=1987 | location=[[Cambridge]] | pages=[https://archive.org/details/marshallplanamer00hoga_388/page/n57 44]–45 |isbn=978-0-521-37840-6}}</ref> was considered by the United States as an important ally for the [[Free World]], and received under the [[Marshall Plan]] over US$1.2&nbsp;billion from 1947 to 1951.

The end of aid through the Plan could have stopped the recovery but it coincided with a crucial point in the [[Korean War]] whose demand for metal and manufactured products was a further stimulus of Italian industrial production. In addition, the creation in 1957 of the [[European Common Market]], with Italy as a founding member, provided more investment and eased exports.<ref name="CraftsToniolo">{{cite book| last1=Crafts |first1=Nicholas |last2=Toniolo |first2=Gianni |title=Economic Growth in Europe Since 1945| url=https://archive.org/details/economicgrowtheu1945craf_729 | url-access=limited | publisher = [[Cambridge University Press]]| year=  1996| location =[[Cambridge]] | page=[https://archive.org/details/economicgrowtheu1945craf_729/page/n452 428]| isbn = 978-0-521-49627-8}}</ref>

These favourable developments, combined with the presence of a large labour force, laid the foundation for spectacular economic growth that lasted almost uninterrupted until the "[[Hot Autumn]]'s" massive strikes and social unrest of 1969–70, which then combined with the later [[1973 oil crisis]] and put an abrupt end to the prolonged boom. It has been calculated that the Italian economy experienced an average rate of growth of GDP of 5.8% per year between 1951 and 1963, and 5% per year between 1964 and 1973.<ref name="CraftsToniolo"/> Italian rates of growth were second only, but very close, to the [[West Germany|West German]] rates, in Europe, and among the [[OEEC]] countries only Japan had been doing better.<ref>{{cite book| last=Di Nolfo |first=Ennio | title = Power in Europe? Great Britain, France, Germany, and Italy, and the Origins of the EEC, 1952–57| publisher=[[Walter de Gruyter]]| year=1992| location=[[Berlin]]| page=198| isbn=978-3-11-012158-2}}</ref>

=== The 1970s and 1980s: from stagflation to "il sorpasso" ===
[[File:G7 leaders 1978.jpg|thumb|Prime Minister [[Giulio Andreotti]] (far left) with [[G7]] leaders in [[Bonn]], 1978]]

The 1970s were a period of economic, political turmoil and social unrest in Italy, known as [[Years of Lead (Italy)|Years of lead]]. Unemployment rose sharply, especially among the young, and by 1977 there were one million unemployed people under the age of 24. Inflation continued, aggravated by the increases in the price of oil in 1973 and 1979. The budget deficit became permanent and intractable, averaging about 10 per cent of the gross domestic product (GDP), higher than any other industrial country. The lira fell steadily, from [[Italian lira|Lire&nbsp;]]560 to the U.S. dollar in 1973 to Lire&nbsp;1,400 in 1982.<ref>{{cite encyclopedia |url=https://www.britannica.com/EBchecked/topic/297474/Italy/27780/Demographic-and-social-change |title=Italy since 1945: Demographic and social change |encyclopedia=[[Encyclopædia Britannica Online]] |access-date=8 February 2015 |archive-date=9 February 2015 |archive-url=https://web.archive.org/web/20150209055816/http://www.britannica.com/EBchecked/topic/297474/Italy/27780/Demographic-and-social-change |url-status=live }}</ref>

The economic recession went on into the mid-1980s until a set of reforms led to the independence of the [[Banca d'Italia|Bank of Italy]]<ref>{{cite book|last1=Vicarelli|first1=Fausto|last2=Sylla|first2=Richard|last3=Cairncross|first3=Alec|title=Central banks' independence in historical perspective|date=1988|publisher=[[Walter de Gruyter]]|location=[[Berlin]]|page=180|isbn=978-3110114409}}</ref> and a big reduction of the indexation of wages<ref>{{cite encyclopedia |title=Italy since 1945: The economy in the 1980s |url=https://www.britannica.com/EBchecked/topic/297474/Italy/27784/The-economy-in-the-1980s |encyclopedia=[[Encyclopædia Britannica Online]] |access-date=8 February 2015 |archive-date=7 January 2015 |archive-url=https://web.archive.org/web/20150107133053/http://www.britannica.com/EBchecked/topic/297474/Italy/27784/The-economy-in-the-1980s |url-status=live }}</ref> that strongly reduced inflation rates, from 20.6% in 1980 to 4.7% in 1987.<ref>{{cite web|title=L'Italia in 150 anni. Sommario di statistiche storiche 1861–2010|url=http://www3.istat.it/dati/catalogo/20120118_00/|publisher=[[National Institute of Statistics (Italy)|ISTAT]]|access-date=8 February 2015|archive-url=https://web.archive.org/web/20150209072207/http://www3.istat.it/dati/catalogo/20120118_00/|archive-date=9 February 2015|url-status=dead}}</ref> The new macroeconomic and political stability resulted in a second, export-led "economic miracle", based on [[small and medium-sized enterprises]], producing clothing, leather products, shoes, furniture, textiles, jewellery, and machine tools. As a result of this rapid expansion, in 1987 Italy overtook the UK's economy (an event known as ''[[Il sorpasso (economics)|il sorpasso]]''), becoming the fourth richest nation in the world, after the US, Japan and [[West Germany]].<ref name="Vietor2001">{{cite web|first=Richard|last=Vietor|title=Italy's Economic Half-Miracle|url=http://www.strategy-business.com/article/17213?gko=2b421|date=1 April 2001|publisher=[[Strategy&]]|access-date=8 October 2014|archive-date=20 November 2017|archive-url=https://web.archive.org/web/20171120074606/https://www.strategy-business.com/article/17213?gko=2b421|url-status=live}}</ref> The [[Milan stock exchange]] increased its market capitalization more than fivefold in the space of a few years.<ref>{{cite web|title=Italian Stock Exchange: Main Indicators (1975–2012)|url=http://www.borsaitaliana.it/borsaitaliana/ufficio-stampa/dati-storici/principaliindicatori2012_pdf.htm|publisher=[[Borsa Italiana]]|access-date=8 February 2015|archive-date=6 November 2018|archive-url=https://web.archive.org/web/20181106211102/https://www.borsaitaliana.it/borsaitaliana/ufficio-stampa/dati-storici/principaliindicatori2012_pdf.htm|url-status=live}}</ref>

However, the Italian economy of the 1980s presented a problem: it was booming, thanks to increased productivity and surging exports, but unsustainable fiscal deficits drove the growth.<ref name="Vietor2001"/> In the 1990s, the new [[Maastricht criteria]] boosted the urge to curb the public debt, already at 104% of GDP in 1992.<ref>{{cite web|title=Italy: General government gross debt (Percent of GDP)|url=http://www.imf.org/external/pubs/ft/weo/2014/02/weodata/weorept.aspx?pr.x=46&pr.y=19&sy=1988&ey=2019&scsm=1&ssd=1&sort=country&ds=.&br=1&c=136&s=GGXWDG_NGDP&grp=0&a=|publisher=[[International Monetary Fund]]|access-date=8 October 2014|archive-date=3 March 2016|archive-url=https://web.archive.org/web/20160303235854/http://www.imf.org/external/pubs/ft/weo/2014/02/weodata/weorept.aspx?pr.x=46&pr.y=19&sy=1988&ey=2019&scsm=1&ssd=1&sort=country&ds=.&br=1&c=136&s=GGXWDG_NGDP&grp=0&a=|url-status=live}}</ref> The consequent restrictive economic policies worsened the impact of the [[early 1990s recession|global recession]] already underway. After a brief recovery at the end of the 1990s, high tax rates and [[red tape]] caused the country to stagnate between 2000 and 2008.<ref>{{cite book |last=Balcerowicz |first=Leszek |year=2013 |title=Economic Growth in the European Union |url=http://www.lisboncouncil.net/growth/documents/LISBON_COUNCIL_Economic_Growth_in_the_EU%20(1).pdf |location=[[Brussels]] |publisher=Lisbon Council |page=13 |isbn=978-9-0902-7915-2 |access-date=8 October 2014 |archive-date=14 July 2014 |archive-url=https://web.archive.org/web/20140714205108/http://www.lisboncouncil.net/growth/documents/LISBON_COUNCIL_Economic_Growth_in_the_EU%20(1).pdf |url-status=dead }}</ref><ref>{{cite news|title="Secular stagnation" in graphics|url=https://www.economist.com/blogs/graphicdetail/2014/11/secular-stagnation-graphics|newspaper=[[The Economist]]|date=19 November 2014|access-date=8 February 2015|archive-date=23 November 2014|archive-url=https://web.archive.org/web/20141123234145/http://www.economist.com/blogs/graphicdetail/2014/11/secular-stagnation-graphics|url-status=live}}</ref>

=== Great Recession ===
[[File:Italy GDP.webp|thumb|300px|Italy real quarterly GDP]]
[[File:GDP per capita big four Western Europe.PNG|thumb|right|GDP per capita of Italy, France, Germany and Britain from 1970 to 2008]]
[[File:Italy bonds.webp|thumb|300px|{{center|Italy bonds}}
[[European debt crisis]] in 2011 <br> [[Negative interest on excess reserves|negative interest rates]] 2015-2022
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{{legend-line|#929292 solid 3px|1 year}}
{{legend-line|#FF95CA solid 3px|3 month}}
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Italy was among the countries hit hardest by the [[Great Recession]] of 2008–2009 and the subsequent [[European debt crisis]]. The national economy shrunk by 6.76% during the whole period, totaling seven-quarters of recession.<ref name="OECD">{{cite web |url=http://stats.oecd.org/index.aspx?queryid=350 |title=Quarterly Growth Rates of real GDP, change over previous quarter |publisher=[[Organisation for Economic Co-operation and Development|OECD]] |access-date=8 February 2015 |archive-date=5 April 2019 |archive-url=https://web.archive.org/web/20190405042217/https://stats.oecd.org/index.aspx?queryid=350 |url-status=live }}</ref> In November 2011 the Italian bond yield was 6.74 per cent for 10-year bonds, nearing a 7 per cent level where Italy is thought to lose access to financial markets.<ref>{{cite news|first1=Barry|last1=Moody|first2=James|last2=Mackenzie|url=https://www.reuters.com/article/2011/11/08/us-italy-idUSTRE7A72NG20111108|title=Berlusconi to resign after parliamentary setback|date=8 November 2011|work=[[Reuters]]|access-date=8 February 2015|archive-date=18 September 2012|archive-url=https://web.archive.org/web/20120918220156/http://www.reuters.com/article/2011/11/08/us-italy-idUSTRE7A72NG20111108|url-status=live}}</ref> According to [[Eurostat]], in 2015 the [[Italian government debt]] stood at 128% of GDP, ranking as the second biggest debt ratio after [[Greece]] (with 175%).<ref>{{cite web |url=http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=teina225&plugin=1 |title=General government gross debt |publisher=[[Eurostat]] |access-date=8 February 2015 |archive-date=6 February 2020 |archive-url=https://web.archive.org/web/20200206104737/http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=teina225&plugin=1 |url-status=live }}</ref> However, the biggest chunk of Italian public debt is owned by Italian nationals and relatively high levels of private savings and low levels of private indebtedness are seen as making it the safest among Europe's struggling economies.<ref>{{cite web |first=Lisa |last=Auret |url=https://www.cnbc.com/2010/05/18/could-italy-be-better-off-than-its-peers.html |title=Could Italy Be Better Off than its Peers? |publisher=[[CNBC]] |date=18 May 2010 |access-date=30 May 2011 |url-status=live |archive-url=https://web.archive.org/web/20110430030613/http://www.cnbc.com/id/37207942/Could_Italy_Be_Better_Off_than_its_Peers |archive-date=30 April 2011  }}</ref><ref>{{cite news|first=Rachel|last=Sanderson|url=http://www.ft.com/intl/cms/s/0/7756acd4-1cdf-11e0-8c86-00144feab49a.html#axzz1SIwD9iir |archive-url=https://ghostarchive.org/archive/fFr0o |archive-date=10 December 2022 |url-access=subscription |url-status=live |title=Italian deficit narrows in third quarter| newspaper=[[Financial Times]] |date=10 January 2011 |access-date=16 July 2011}}</ref> As a shock therapy to avoid the debt crisis and kick-start growth, the [[national unity government]] led by the economist [[Monti Cabinet|Mario Monti]] launched a program of massive [[austerity measures]], that brought down the deficit but precipitated the country in a [[double-dip recession]] in 2012 and 2013, receiving criticism from numerous economists.<ref>{{cite news|last1=Krugman|first1=Paul|title=Austerity, Italian-Style|url=https://www.nytimes.com/2013/02/25/opinion/krugman-austerity-italian-style.html |archive-url=https://ghostarchive.org/archive/20220103/https://www.nytimes.com/2013/02/25/opinion/krugman-austerity-italian-style.html |archive-date=2022-01-03 |url-access=subscription |url-status=live|access-date=26 November 2017|work=The New York Times|date=24 February 2013}}{{cbignore}}</ref><ref>{{cite news|last1=Orsi|first1=Roberto|title=The Demise of Italy and the Rise of Chaos|newspaper=Euro Crisis in the Press |date=8 October 2013|url=http://blogs.lse.ac.uk/eurocrisispress/2013/10/08/the-demise-of-italy-and-the-rise-of-chaos/|publisher=[[London School of Economics]]|access-date=26 November 2017|archive-date=12 April 2019|archive-url=https://web.archive.org/web/20190412122838/https://blogs.lse.ac.uk/eurocrisispress/2013/10/08/the-demise-of-italy-and-the-rise-of-chaos/|url-status=live}}</ref>

=== Economic recovery ===
In the period 2014-2019, the economy partially recovered from the disastrous losses incurred during the [[Great Recession]], primarily thanks to strong exports, but nonetheless, growth rates remained well below the [[Euro area]] average, meaning that Italy's GDP in 2019 was still 5 per cent below its level in 2008.<ref>{{cite news |title=Italy exits recession as exports boost growth |url=https://www.ft.com/content/5715b188-6b35-11e9-80c7-60ee53e6681d |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/5715b188-6b35-11e9-80c7-60ee53e6681d |archive-date=10 December 2022 |url-access=subscription |access-date=6 December 2020 |publisher=[[Financial Times]] |date=30 April 2019}}</ref>

==== Economic impact of COVID-19 pandemic (2020-2021) ====
Starting from February 2020, Italy was the first country of Europe to be severely affected by the [[COVID-19 pandemic]],<ref>{{cite web |title=Coronavirus in Italia, i dati e la mappa |url=https://lab24.ilsole24ore.com/coronavirus/?utm_source=fasciahp |website=ilsole24ore.com |access-date=18 July 2020}}</ref> that eventually expanded to the rest of the world.
The economy suffered a massive shock as a result of the [[COVID-19 pandemic lockdown in Italy|lockdown]] of most of the country's economic activity. After three months, at the end of May 2020, the pandemic was put under control, and the economy started to recover, especially, the manufacturing sector. Overall, it remained surprisingly resilient, although GDP plummeted like in most western countries.<ref>{{cite web |title=L'Italia che riparte |url=https://www.ilsole24ore.com/dossier/20200603-italia-riparte-ADuNiCV |website=ilsole24ore.com |access-date=18 July 2020 |archive-date=18 July 2020 |archive-url=https://web.archive.org/web/20200718055834/https://www.ilsole24ore.com/dossier/20200603-italia-riparte-ADuNiCV |url-status=live }}</ref><ref>{{cite news |title=Why Can't Trump's America Be Like Italy? |url=https://www.nytimes.com/2020/07/23/opinion/us-italy-coronavirus.html |work=[[The New York Times]] |date=23 July 2020 |access-date=27 July 2020 |last1=Krugman |first1=Paul |archive-date=26 July 2020 |archive-url=https://web.archive.org/web/20200726215804/https://www.nytimes.com/2020/07/23/opinion/us-italy-coronavirus.html |url-status=live }}</ref>
The Italian government issued special treasury bills, known as BTP Futura<ref>{{cite web |title=BTP Futura – Prima Emissione |url=https://www.borsaitaliana.it/obbligazioni/bpt-italia/btpfutura.htm |website=borsaitaliana.it |access-date=18 July 2020 |archive-date=18 October 2020 |archive-url=https://web.archive.org/web/20201018202714/https://www.borsaitaliana.it/obbligazioni/bpt-italia/btpfutura.htm |url-status=dead }}</ref> as a COVID-19 emergency funding, waiting for the approval of the [[European Union response to the COVID-19 pandemic|E.U. response to the outbreak]].<ref>{{cite web |title=Recovery Fund e bilancio: ecco le poste in gioco al Consiglio europeo |url=https://www.ilsole24ore.com/art/recovery-fund-e-bilancio-ecco-poste-gioco-consiglio-europeo-ADxrbte |website=ilsole24ore.com |date=17 July 2020 |access-date=18 July 2020 |archive-date=18 July 2020 |archive-url=https://web.archive.org/web/20200718042521/https://www.ilsole24ore.com/art/recovery-fund-e-bilancio-ecco-poste-gioco-consiglio-europeo-ADxrbte |url-status=live }}</ref> Eventually, in July 2020, the [[European Council]] approved the 750 billion € [[Next Generation EU]] fund,<ref>[https://www.consilium.europa.eu/en/meetings/european-council/2020/07/17-21/ Special European Council, 17-21 July 2020] {{Webarchive|url=https://web.archive.org/web/20200718205218/https://www.consilium.europa.eu/en/meetings/european-council/2020/07/17-18/ |date=18 July 2020 }} Retrieved 15 November 2020.</ref> of which €209 billion will go to Italy.<ref>{{cite news |title=EU recovery fund gives chance to 'change the face' of Italy |url=https://www.reuters.com/article/us-eu-summit-conte/conte-eu-recovery-fund-gives-chance-to-change-the-face-of-italy-idUSKCN24M0JF |access-date=2 September 2020 |work=Reuters |date=21 July 2020 |language=en |archive-date=3 August 2020 |archive-url=https://web.archive.org/web/20200803231817/https://www.reuters.com/article/us-eu-summit-conte/conte-eu-recovery-fund-gives-chance-to-change-the-face-of-italy-idUSKCN24M0JF |url-status=live }}</ref>

=== Economic resilience ===
[[File:Ferrari_Portofino_IMG_0532.jpg|thumb|The [[Ferrari Portofino]] represents the synergy of "[[Made in Italy]]" [[List of Italian brands|brands]] that strengthens the Italian economy.]]
Beginning in 2022, after the COVID-19 pandemic, Italy restarted with a resilient economy<ref>{{cite news |title=Pil, continua il trend positivo: la produzione cresce di quasi 100 miliardi rispetto al 2021 |url=https://www.ilgiornale.it/news/politica-economica/pil-italiano-cresce-100-miliardi-2372138.html |access-date=24 September 2024 |agency=ilgiornale.it |publisher=ilgiornale.it |date=23 September 2024}}</ref> which nonetheless had to face the [[Global energy crisis (2021–2023)|global energy crisis of 2021-2023]], involving an increase in gas and other energy prices due to the [[Russian invasion of Ukraine]] on 24 February 2022. This crisis created the need to find an alternative supplier to Russia, subject to [[International_sanctions_during_the_Russian_invasion_of_Ukraine#EU_sanctions|European Union sanctions]].
With rising energy prices, inflation [[2021–2023_inflation_surge#Europe|rose in Europe]], which was addressed by the [[European Central Bank]] with a progressive increase in interest rates.
Furthermore, the PNRR ({{Interlanguage link|Piano Nazionale di Ripresa e Resilienza|it}}) had to be re-calibrated and re-agreed with the [[European Union]], to address the new geopolitical situation which led to the [[Economic_impact_of_the_Russian_invasion_of_Ukraine|energy crisis and damage to supply chains]], causing shortages in raw materials.<ref>{{cite news |title=Prezzi del gas e impatto sull'economia. Un monito per il Governo che verrà |url=https://www.econopoly.ilsole24ore.com/2022/09/12/gas-economia-impatto/ |access-date=23 September 2024 |agency=ilsole24ore.com |publisher=ilsole24ore.com |date=12 September 2022}}</ref> 
In March 2023, the [[2023 United States banking crisis|United States banking crisis]] occurred with some bankruptcies and restructuring of American banks, however it was soon understood that it was a short-lived economic-financial phenomenon limited to the United States, although with some concern, it has not had an impact in the European area, with the exception of the collapse of [[Credit Suisse]], in [[Switzerland]]. As a consequence, Italy is witnessing a tightening of its credit policies. 

For Italian banks, there was an opportunity to strengthen themselves, thanks to the high rates imposed by the [[European Central Bank]]. The new BTP Valore bonds were released, which were very successful among the private operators to whom they were marketed due to the high interest rates.<ref>{{cite web |title=BTP Valore, il titolo di Stato per i piccoli risparmiatori |url=https://www.mef.gov.it/focus/BTP-Valore-il-titolo-di-Stato-per-i-piccoli-risparmiatori/ |website=mef.gov.it |access-date=24 September 2024}}</ref><ref>{{cite news |title=BTp Valore, raccolti 14,6 miliardi in tre giorni. Borse chiudono deboli, bitcoin oltre 61mila $ |url=https://www.ilsole24ore.com/art/borsa-country-garden-richiesta-liquidazione-domanda-forte-btp-valore-AFY2PisC |access-date=24 September 2024 |agency=ilsole24ore.com |publisher=ilsole24ore.com |date=28 February 2024}}</ref> From October 7, 2023, geopolitical tensions are becoming more intense, related to the [[Gaza war|conflict in the Middle East]]. In 2024, however, the Italian economy continues to maintain its resilient strength, thanks to the reduction in energy prices, and the maintenance or reduction of oil prices, this stability allows a reduction in inflation. In September 2024, the European Central Bank has decreased interest rates by 0.25 percentage points. The Italian economy copes with a geopolitical scenario that was significantly deteriorating with the exacerbation of ongoing war conflicts. Strategic assets are better protected, in particular the [[Defense Sector|defense sector]]. Furthermore, the implementation of the PNRR plan, which must be completed by 2026, has brought benefits to many economic sectors.<ref>{{cite news |title=Con la spinta del Pnrr fino a 3,9 milioni di assunzioni nei prossimi 5 anni: finanza, commercio e turismo in pole |url=https://www.ilsole24ore.com/art/con-spinta-pnrr-fino-39-milioni-assunzioni-prossimi-5-anni-finanza-commercio-e-turismo-pole-AFjq06kD |access-date=24 September 2024 |agency=ilsole24ore.com |publisher=ilsole24ore.com |date=6 September 2024}}</ref><ref>{{cite news |title=Perché dopo il Covid il Pil italiano cresce più di Germania e Francia |url=https://24plus.ilsole24ore.com/art/perche-il-covid-pil-italiano-cresce-piu-germania-e-francia-AGONuxB |access-date=25 September 2024 |agency=ilsole24ore.com |publisher=ilsole24ore.com |date=25 September 2024}}</ref>

===Currency===
{{main|History of coins in Italy}}
[[File:100 lire Repubblica Italiana 1956.jpg|thumb|right|100&nbsp;lire coin, 1956, with goddess [[Minerva]] holding an olive tree and a long spear depicted on the reverse]]

[[History of coins in Italy|Italy has a long history of different coinage types]], which spans thousands of years. Italy has been influential at a coinage point of view: the medieval [[Florin (Italian coin)|Florentine florin]], one of the most used coinage types in European history and one of the most important coins in Western history,<ref>{{cite web|url=http://www.ilgiornaledellanumismatica.it/dossier-speciale-il-fiorino-di-firenze-breve-storia-del-dollaro-del-medioevo/|title=IL FIORINO DI FIRENZE, STORIA DEL "DOLLARO DEL MEDIOEVO"|date=19 January 2017|access-date=4 October 2023|language=it|archive-date=5 October 2023|archive-url=https://web.archive.org/web/20231005095053/http://www.ilgiornaledellanumismatica.it/dossier-speciale-il-fiorino-di-firenze-breve-storia-del-dollaro-del-medioevo/|url-status=live}}</ref> was struck in [[Florence]] in the [[13th century]], while the [[Sequin (coin)|Venetian sequin]], minted from 1284 to 1797, was the most prestigious gold coin in circulation in the commercial centers of the [[Mediterranean Sea]].<ref>{{Cite book|author=Nicolò Papadopoli Aldobrandini|title=Le monete di Venezia descritte ed illustrate da Nicolò Papadopoli Aldobrandini|year=2009|publisher="Progetto Gutenberg Piero Vianelli|page=136|language=it}}</ref> 

Despite the fact that the first Italian coinage systems were used in the [[Magna Graecia]] and [[Etruscan civilization]], the [[Roman people|Romans]] introduced [[Roman currency|a widespread currency]] throughout Italy. Unlike most modern coins, Roman coins had intrinsic value.<ref>{{cite web|url=https://www.homolaicus.com/storia/antica/roma/monete.htm|title=IL VALORE DELLE MONETE ROMANE|access-date=4 October 2023|language=it|archive-date=10 June 2023|archive-url=https://web.archive.org/web/20230610112256/http://www.homolaicus.com/storia/antica/roma/monete.htm|url-status=live}}</ref>  The early modern Italian coins were very similar in style to French francs, especially in decimals, since it was ruled by the country in the [[Napoleonic Kingdom of Italy]]. They corresponded to a value of 0.29 grams of gold or 4.5&nbsp;grams of silver.<ref>{{cite web|url=http://www.ilmarengo.com/italia/welcome.htm|title=Italian coins|website=ilmarengo.com|access-date=14 April 2018|archive-date=8 August 2017|archive-url=https://web.archive.org/web/20170808023109/http://www.ilmarengo.com/italia/welcome.htm|url-status=live}}</ref>

Since Italy has been for centuries divided into many [[List of historic states of Italy|historic states]], they all had different coinage systems, but when the country became [[Italian unification|unified]] in 1861, the [[Italian lira]] came into place, and was used until 2002. The term originates from ''libra'', the largest unit of the [[Carolingian monetary system]] used in Western Europe and elsewhere from the 8th to the 20th century.<ref>The last country to abandon the Carolingian system was [[Nigeria]] in 1973, when the [[Nigerian pound|pound]] was replaced by the [[Nigerian naira|naira]].</ref> In 1999, the [[euro]] became Italy's [[unit of account]] and the lira became a national subunit of the euro at a rate of 1&nbsp;euro = 1,936.27&nbsp;lire, before being replaced as cash in 2002.