| Italy has a fundamentally robust economy and | | | | At the same time as there is such a vibrant |
| high national incomes, with a GDP per capita of | | | | export market, there are also around 500 billion |
| over 30,000 dollars. There has been consistent | | | | dollars of imports to Italy. The most important |
| GDP growth until the arrival of the global | | | | trading partner is Germany again, accounting for |
| economic slowdown in 2008. The economy of | | | | 17% of all imported goods, followed in terms of |
| Italy has transformed since the Second World | | | | magnitude by France, then China, Netherlands, |
| War as over this period the country has | | | | Belgium and Spain. Many a shipping company has |
| developed from an agriculturally based economy | | | | recently entered the comparatively new freight |
| to an industrial nation that can now stake claim to | | | | services market serving the business between |
| being the world's seventh largest market | | | | Italy and China. |
| economy. The fact that Italy is a member of the | | | | Imports to Italy include machinery and transport |
| Group of Eight (G8) industrialized nations is a | | | | equipment, foodstuffs, metals, wool, cotton and |
| testament to this remarkable latter day | | | | energy products. |
| renaissance. | | | | The country has significant budget deficits and |
| Italy's economy benefits from some natural | | | | high public debt. This situation is under increasing |
| resources, in particular in agriculture, fishing and | | | | strain at present due to the global economic |
| natural gas. However, the country is a net | | | | slowdown and the budget deficit is expected to |
| importer of food as much of the land in Italy is | | | | grow higher than the 3% ceiling stipulated as a |
| not suitable for agriculture. Natural gas is the | | | | condition of its membership of the European |
| country's most important natural mineral resource, | | | | Union, which it joined in 1998. The global economic |
| mainly in the Po Valley and offshore in the | | | | crisis has had a negative impact on both exports |
| Adriatic. Most raw materials for manufacturing | | | | and domestic demand in 2008 and 2009. The |
| have to be imported into Italy, as well as more | | | | freight services market has suffered in turn as a |
| than three quarters of its energy requirements. | | | | result of this downturn. There has been a decline |
| So this situation has had an impact on the | | | | in income for the freight forwarding sector |
| development of freight services to Italy, with a | | | | operating in Italy in 2008 and 2009, but the |
| highly developed system of freight forwarders | | | | impact of increasing competition has been a spur |
| and shipping companies serving the import market | | | | to development as the better freight companies |
| and making use of a developed intermodal | | | | raise their game to compete more effectively. |
| transport system. | | | | Apart from the current economic slowdown, Italy |
| Within agriculture, important products in Italy | | | | is struggling with the long term impact of |
| include wheat, rice, grapes, beef, dairy products, | | | | increasing competition from China and other low |
| olives, citrus fruit, potatoes and sugar beets. | | | | wage countries on Italy's lower end industrial |
| The most important industries are tourism, iron | | | | product sector. As a result, Italy, like other |
| and steel, chemicals, machinery, precision | | | | industrialised nations is increasingly looking to build |
| engineering, automotives, textiles, clothing, | | | | competitive advantage through added value and |
| footwear and ceramics. | | | | knowledge based differentiation. Over time, this |
| The international freight systems are sophisticated | | | | change of emphasis should help protect the Italian |
| and well geared up to handling the specific needs | | | | economy and the freight services sector will |
| of these kinds of merchandise. | | | | doubtless respond to reflect any changes. |
| In 2008, Italy exported over 500 billion dollars of | | | | One particular point worth noting regarding the |
| merchandise, primarily mechanical products, | | | | economy in Italy is that it is also affected by a |
| clothing, textiles, transportation equipment, metal | | | | large black economy, thought to represent around |
| products, chemical products, food and agricultural | | | | a third of total GDP, which represents |
| products. Germany is the single most important | | | | considerable lost revenue in tax to the |
| destination for exports, accounting for over 12% | | | | government, and is a perpetual challenge as the |
| of the total, followed by France, at just under | | | | government in Italy look to find ways to |
| 12%, then Spain at 7%, United States at 7% and | | | | strengthen the economy further. This is just one |
| the United Kingdom at 6%. So there is | | | | of the many challenges facing Italy and its |
| considerable existing expertise and knowledge | | | | economy, but there is little doubt that the |
| within shipping companies about the most efficient | | | | economy and the freight services sector that |
| ways of arranging international freight between | | | | supports its international freight will continue to |
| these countries. | | | | thrive over the longer term. |