Located along the Mediterranean Sea in Southern Europe, Italy became a nation-state in 1861. After World War II, in 1946, a popular referendum abolished the monarchy and proclaimed Italy a parliamentary republic.

Italy is composed of 20 administrative regions, and Rome is the capital. Italy’s northern regions per capita income are among the richest in Europe.

The country is a founding member of the European Economic Community (EEC) and North Atlantic Treaty Organization (NATO). It is also a member state of the United Nations (UN), World Trade Organization (WTO), and Organization for Economic Co-operation and Development (OECD).

Italy has a diversified economy, which is divided into a developed industrial north and a less-developed, agricultural southern region. The Italian economic structure relies mainly on services and manufacturing, and it’s driven in large part by the manufacturing of high-quality consumer goods. The country’s main economic sectors are wholesale and retail trade, fashion, tourism, engineering, chemicals, motor vehicles and food services; these products contribute substantially to the country’s exports. 

Small and medium-sized firms (SMEs) dominate Italy’s economy, many of which are family-owned, comprising 99% of Italian businesses and producing 68% of Italy’s GDP.

Italy is the third-largest economy in the eurozone and the world’s ninth-largest economy. 

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