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Global Development: Part II Europe
Italy
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Italy just 50 years ago was primarily an agricultural society. Today, it is a leading industrial power. The population of Italy is 57.5 million and the per capita income $20,250 on GDP of $1163 trillion. The exchange rate is $1670 lira=$1.00 and inflation is at 1.8%. The government is week and unemployment is high. Italy's top income tax rate is 46% (average: 34%). The top corporate rate is 37%, capital gains tax, 37%, and the value-added, 20%. The government consumes about 16.6% of GDP and is responsible for about 40% of economic output.
For the long term, the automotive market in Italy is going to have a rough time and will not return to the days of high volume in 1990. Italy's total fleet is 32 million passenger cars, with new-car registrations of 2.6 million annually. Fiat's domination of its home market is unmatched in the developed world.
Country profiles were provided by Raymond Champagne
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