Stages and effects of Italy's economy development in the historical dimension

Abstract

The article analyzes the stages of the economic development of Italy from the mid-nineteenth century to the world economic and financial crisis in period 2007–2009. The economy of Italy is an interesting example among developed capitalist countries. In the post-war years, Italy, starting from a low level, quickly became one of the industrial powers in the world. The 1950s and 1960s were a period of dynamic industrialization of this country, which resulted in the expansion of a number modern industries, especially chemical and machine industries. Italy was even considered an example of an «economic miracle». The main feature of this period was the rapid growth of gross (GNP) and net (PNN) national product, which was accompanied by a high investment rate, dynamic export growth, a significant reduction in unemployment and profound changes in the employment structure. Since the mid-1990s, their economy has been developing significantly slower than the EU average. In 2019, GDP (nominal) in this country amounted to 1,988 billion dollars, which allowed Italy to take eighth place in the world ranking of the largest economies and despite the crisis, the fourth economy in Europe (after Germany, Great Britain and France). The economic problem is significant unemployment (9.8% in 2020) and the country's internal debt amounting to 134.8% of GDP (in 2019). The interdependence of export-investment-economic growth was historically the driving mechanism of the economic development of Italy in the 1950s and 1960s. However, in the 1970s, or even slightly earlier, the period of dynamic development ended. The aforementioned driving mechanism of the economy has ceased to function.