Italy: GDP and Economic Status, Essay Example

Summary

Italy, one of the strongest economies of the world is noted to be strongly dependent on their exporting activities when it comes to developing their position in the competitive market. As of the current  status of Italy, the country’s capacity to earn a national profit to increase their GDP rate is dependent on the manufacturing activities that they are engaged in. The country is now recognized to be among the top producers of machineries and other electronic devices as well as automobiles that are of high quality in comparison with other automobile producers around the globe.

Measuring National Resources

Italy’s current GDP per person as reported is at $17,997 noting that the individuals included in the ratio-measurement are employed [or are earning a specific amount of money for a living] may it be from an organization they are engaged in or from personally established earning entity. This report has been based from the 1990 recorded data (PPP$). At present, Italy boasts a high rate of 60% when it comes to the measure of individuals who actually have work and are earning for their own living. This accounts for a 64% of labor participation rate of workers ranging from ages 15 and above. While the country embraces the course of legal-labor, child labor is strictly prohibited. Nevertheless, there is a fair chance that there are some children younger than 15 years of age that are subjected to early working engagements. This however has not been reported accordingly. Women on the other hand covers at least 45% of the overall population that has been measured to belong to legal forms of employment and businesses. In relation to measuring the work competency of the human resources contributing to the country’s success, there is currently a 106% rate of enrolled students in primary level and 70% of those who are enrolled in the secondary level. In this case, 91% of sufficient learning and competency is garnered by male learners and 89% rate measures the women’s competency. Based on worker’s remittances and compensation of the employees, Italy is noted to record $449.2 billon earnings towards the year 2010. This then accounts for at least 66.3% of market capitalization based on the GDP of companies who employ the amicable number of workers in the country.

When it comes to land resources that the country uses for operation, there is currently an accounted 37.7% of the country’s land resources dedicated to agricultural activities. This adds in the need for the national-food production. In relation to this, the land’s use was able to produce at least 123.0 percentage of food between the years 2004 to 2006. So far, the said amount of food was rendered sufficient for the current population of the country.

Nevertheless, even though the country’s land area is expected to suffice the people’s need for food supplies, there is an impending source of problem that questions the capacity of the nation’s land resource to support the human population’s need for natural materials both for survival and for the industrial activities taking place in the country. As the issue of global warming and climate change continues to confer with the country’s status in securing the development of natural resources, Italy continues to suffer from having low-grade integrity of their own resources including the rising of the rate of pollution in water and air resources.

Due to the focus on industrial activities, the country’s most important resources become easily contaminated with chemicals and other substances used for the production of the machineries and other items they create for international trade-export purposes. In relation to this the country reported to have been emitting CO2 emissions (kt) of at least 32, 082, 583 counting from the report of the year 2008. This data specifically affects the overall natural integrity of the country’s resources when it comes to the capacity they have to support the nation’s needs and demands for living. Other specific buildings and establishments around the country also caused several land erosions rendering such areas unusable unless re-strengthened through land engineering procedures that are of course costly. Because of this particularly severe problem, the country is now being strongly empowered to embrace new options of industrial operations that are more sustainable and are designed to protect natural resources of the nation not only for the current generation’s benefit, but for that of the future generations to come. It is assumed that if this call for restructuring their environmental policies would not be seriously taken into consideration, the repetition of the most devastating tragedies in the history of Italy would again plague the country hence affecting their economic integrity with huge implications.

On International Relationships and the Worldwide Trading Industry

Italy now depends so much on the manufacturing capacities of the nation as it offers more of what has been produced by the human hand rather than presenting the world’s trade industry with what their land can offer. In relation to this, a ratio of 12-1exports to GDP is noted, given that there is currently a smaller consideration assumed when it comes to providing support to companies aiming to be put up in the country. Most often than not, small sectors of businesses earn their benefits and their profits based on personal capital rather than that of the support and assistance that come from banks due to lower trust securities. This then affects the capacity of the country to export to other nations as well.

The current GDP of Italy is at $2.195 trillion from a total population of 60.77 million individuals who contribute to the production of the said amount of income for the country. In this case, it could be realized that the government purchases of goods and demands affect the said account fully as they are most likely to import oil products from outside countries due to their inability to produce such product. For the course of manufacturing items that are to be exported later on, oil is specifically needed; hence affecting the overall income of the country. This could be further understood through the report shown within the graph that follows:

Relatively though, the country has been reported to have a 0.80% of growth during the second quarter of the current year. This has been based from the 6.0% of growth rate from March of 1970 towards a drop of -3.2 percent in March 2009. Looking through the future though, knowing that the country exports industrialized products such as machineries and automated vehicles, it is expected that there would at least be a need for three to five more years to double the country’s GDP if the demand for the products they offer in the world market would continue to rise.

Overall Reaction

Based from the report, Italy has a high sense of control when it comes to its human power. Although it lacks the capacity to use its natural resources fully, shifting its attention towards producing man-made products for export largely supports the development of the nation’s economy through the years. The fact that the country depends on such procedural manufacturing, it is often considered a hurtful course that the nation has to import oil products [what is most needed in the manufacturing process]. Nevertheless, finding a way to cover up for the said expenses is continuously being prompted as source of the country’s confidence. Through supporting small clusters of businesses, Italy tries to continue its competition with other exporting nations around the globe and still fares well in terms of facing the challenges they have to handle with regards the utilization of oil products.