Italy has a capitalist mixed economy, ranking as the third-largest in the Eurozone and the eighth-largest in the world. The country is a founding member of the G7, G8, the Eurozone and the OECD.

Italy is regarded as one of the world's most industrialised nations and a leading country in world trade and exports. It is a highly developed country, with the world's 8th highest quality of life[19] and the 25th Human Development Index. In spite of the recent global economic crisis, Italian per capita GDP at purchasing power parity remains approximately equal to the EU 27 average, while the unemployment rate (12.6%) stands slightly above the Eurozone average. The country is well known for its creative and innovative business, a large and competitive agricultural sector (Italy is the world's largest wine producer), and for its influential and high-quality automobile, machinery, food, design and fashion industry.



Italy is the world's sixth largest manufacturing country, characterised by a smaller number of global multinational corporations than other economies of comparable size and a large number of dynamic small and medium-sized enterprises, notoriously clustered in several industrial districts, which are the backbone of the Italian industry. This has produced a manufacturing sector often focused on the export of niche market and luxury products, that if on one side is less capable to compete on the quantity, on the other side is more capable of facing the competition from China and other emerging Asian economies based on lower labour costs, with higher quality products.



Italy is part of the European single market which represents more than 500 million consumers. Several domestic commercial policies are determined by agreements among European Union (EU) members and by EU legislation. Italy introduced the common European currency, the Euro in 2002. It is a member of the Eurozone which represents around 330 million citizens. Its monetary policy is set by the European Central Bank.

A gaping North–South divide is a major factor of socio-economic weakness. It can be noted by the huge difference in statistical income between the northern and southern "comuni". The Index of Economic Freedom, the country ranks 86th in the world because of an inefficient state bureaucracy, low property rights protection and high levels of corruption, heavy taxation and public spending that accounts for about half of the national GDP.

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