![]()
- Why Stronger Chinese Yuan Would Benefit US Investors
- Hewlett-Packard to Acquire 3Com for $2.7 Billion in Cash
- AIG CEO: I Remain 'Totally Committed' to Firm
- How the Droid and Google Threaten the GPS Makers
- A Day on the USS Harry S. Truman
- Commercial Real Estate Near Disaster: Fund Manager
- This Town Will Pay YOU $10,000 to Buy a House
- Billionaire Paulson Raises Cadbury Stake Again
- Applied Materials Profit, Sales Top Wall Street Forecasts
- What to Expect From Disney Earnings?
- HP's Shot Across Cisco's Bow
- USC Football Blog Leads All-Access Space
- Clowning Around At Work
- Ahead of Earnings Disney Restructures Studio
- Nov. 11: Unusual Volume Leaders
- 3 'Clear Sailing' Mid-Caps For Investors: Strategist
- Intimate Apparel Sales Heating Up: Maidenform CEO
- A Day On The USS Harry S. Truman
MOST SHARED
- Hewlett-Packard to Acquire 3Com for $2.7 Billion in Cash
- USC Football Blog Leads All-Access Space
- Addicted to Easy Money?
- This Town Will Pay YOU $10,000 to Buy a House
- Dollar Trouble, Oil's Bubble Could Derail Recovery
- Credit Is Thawing, But Businesses Still Hesitant to Borrow
- Why Stronger Chinese Yuan Would Benefit US Investors
- Oil Tomorrow

Country Overview: Italy has a diversified, primarily industrial economy with roughly the same total and per capita output as France and the UK. In recent years, it has pursued a tight fiscal policy to meet the requirements of the European Union and has benefited from lower interest and inflation rates.
The country is divided between an industrial north, dominated by private companies, and an agricultural south, with 20% unemployment and a heavy welfare burden. Most raw materials needed by industry and 75% of energy requirements are imported.
The current government has enacted numerous short-term economic reforms, but has moved slowly on lightening the tax burden. Strong labor unions have opposed changes in a generous pension system. Economic growth was slow in 2006, with unemployment remaining high.
What to Watch: Italy -- Milan in particular -- is where the stock exchange meets the fashion industry.
This season, shoemaker Ferragamo has invited its buyers, clients and the media to show off its latest collection right here on the floor of the stock exchange to make the statement that they are on track for their 2008 IPO listing. But this is just one of the many luxury groups headed for listing.
Among others: Prada, the largest of group, could be valued at up to four billion euros. Damiani, the jeweller that Hollywood loves, is the first in line and its IPO is due before year end. And Versace, after a very successful turnaround, could be next.
Then there’s Cavalli, Brioni, Belstaff, Sizty, Patrizia Pepe that could all join the likes of Valentino, Bulgari, Tod’s and Luxottica that are already on the big board.
After a long tradition of family business, much of Italian fashion is ready to turn to the market to fund their growth and to go global. In fact sales are booming and numbers speak clearly — exports grew by 20 percent in the first quarter of 2007.
Gowns, accessories, shoes, jewels, eyewear, this is where Italian brands make the difference. But this growth has a price — more stores, more lines, more investments — from accessible luxury to superniche products. This is where opportunity lies for investors.
Italy |
By The Numbers |
| 2000 | 2006 | |
| Population | 56.9 million | 58.6 million |
| Economy | ||
| GNI, Atlas method (current US$) | 1.2 trillion | 1.9 trillion |
| GNI per capita, Atlas method (current US$) | 20,900.0 | 32,020.0 |
| GDP (current US$) | 1.1 trillion | 1.8 trillion |
| GDP growth (annual %) | 3.6 | 1.9 |
| Inflation, GDP deflator (annual%) | 2.0 | 1.8 |
| Agriculture, value added (% of GDP) | 2.8 | N/A |
| Industry, value added (% of GDP) | 28.4 | N/A |
| Services, etc., value added (% of GDP) | 68.8 | N/A |
| Exports of goods and services (% of GDP) | 27.1 | N/A |
| Imports of goods and services (% of GDP) | 26.1 | N/A |
| Gross capital formation (% of GDP) | 20.7 | N/A |
| Revenue, excluding grants (% of GDP) | 36.9 | N/A |
| Cash surplus/deficit (% of GDP) | -0.7 | N/A |
| States and Markets | ||
| Time required to start a business (days) | N/A | 13.0 |
| Market capitalization of listed companies (% of GDP) | 70.0 | N/A |
| Military expenditure (% of GDP) | 2.0 | N/A |
| Fixed line and mobile phone subscribers (per 1,000 people) | 1,218.6 | N/A |
| Internet users (per 1,000 people) | 231.8 | N/A |
| Roads, paved (% of total roads) | N/A | N/A |
| High-technology exports (% of manufactured exports) | 9.2 | N/A |
| Global Links | ||
| Merchandise trade (% of GDP) | 43.7 | 45.8 |
| Net barter terms of trade (2000 = 100) | 100.0 | 97.5 |
| Foreign direct investment, net inflows (BoP, current US$) | 13.2 billion | N/A |
| Workers' remittances and compensation of employees, received (US$) | 1.9 billion | 2.4 billion |
source: World Development Indicators database, April 2007 |
- Bernard and Ruth Madoff's personal possessions will be auctioned this weekend. Click ahead to see.
- US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
- An Italian cashmere maker aims to make profits while creating ideal conditions for his workers.
- Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.
- The real result of health care reform will be bloated government and higher deficits, says Larry Kudlow.
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.











