ECONOMIC CONSQUENCES
After the recession of 2008 and 2012, Italy has opted for a capitalist or free market system. This is recognized thanks to the fact that Italy has the 4 typical characteristics of this system:
- Private property is recognized in the means of production.
-Italy is looking for profit as an economic engine.
-The law of supply and demand is applied.
Nowadays, after the crisis suffered, in Italy the secondary sector is the axis of the Italian economy since it has been the motor of development of this country. The tertiary sector or service sector also has a great weight in the Italian economy.
The country can be divided into two zones, the more industrialized and developed north dominated by private companies and where the country's financial center, Milan, is located. And the south is more agricultural and less developed, dependent on government subsidies and with a higher unemployment rate.
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In addition, in recent years the economy of Italy (like the other European countries) was hit by the Great global economic recession originated in the year 2008. In the last 8 years (since 2009), the Italian GDP has decreased by 27 % going from having a GDP of 2,402,062 (2 trillion, 402 billion dollars) in 2008, to only produce 1,850,735 (1 trillion, 850 billion dollars) for the year 2016.
At the beginning of the 10 years, Italy had a Gross Domestic Product (nominal) of USD 2,129,020 (2 billion 129,021 million dollars). By 2018, the country's GDP reached USD 2,181,970 (2 billion 181.970 million dollars). Up to the present (2017) the Italian economy had a nominal growth of 2.48% during this decade with respect to the GDP of the year 2010.
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If the adjustments and bailouts fail, Greece, Spain and Italy - one of the six founding countries and signatories of the Treaty of Rome - would leave the Eurozone, transactions and trade between their members would be reduced and the whole world would suffer.