Italy's Economics Vs. United States Economics

Italy’s Economics vs. United States’ Economics Italy is the ninth biggest economy in the world, compared to the United States being the largest economy. Italy relies on services and manufacturing to account for the country’s GDP. Around three quarters of the total GDP is coming from the services sector, then the industry sector takes another quarter. The remaining GDP is accounted for Italy’s agriculture. The U.S. has a highly developed and advanced technology service sector, and this accounts for 80% of its output. Around 15% of the output also comes from manufacturing, which is important because the U.S has the second largest manufacturing base. Agriculture in the U.S accounts for around 2-5% of its’ total output. These two economies are

Unemployment in Italy is at the highest it has ever been at 12.1%. This being due to the countries poor economic reform plans and it’s scattered political landscape. Other European countries are helping Italy bounce back by supporting the manufacturing and industrial sectors. There are still unsolved economic problems such as, sluggish growth, little fiscal position, and weak banking system. Some ways the government plans of helping the economy is to raise taxes on tobacco and gambling and reduce tax evasion. The results are expected to lower budget deficit by 2.1% of GDP from the previous 2.3% target. The U.S. has had a considerably low unemployment rate from the last seven years at 4.7% in 2016 and around 9.9% in 2009. This is due to the amount of jobs that were being added every month and the participation rate at a stable 63.0% in March of

and Italy. The imports in an annual percentage for Italy in 2016 are at -2.3% and was at 1.1% for the United States in 2016. Both countries have been decreasing over that past couple years however, Italy being a more inconsistent. Italy’s growth has hand some sectors grow and others fall short. The government consumption added growth to a 0.6% expansion in the fourth quarter, but inventories took 0.2% from the growth, and private consumption stalled because of political situations. Imports increased 1.0% in the third quarter to a 2.2% rise in the fourth quarter. The U.S. deceleration in imports growth helped the net contribution of overall growth swing from -1.8% in the fourth quarter to 0.1%-point contribution in quarter one. Exports for Italy were at a 0.9% while the U.S. were at 3.5% in 2016. Italy had expanded 1.9% in the fourth quarter from a 0.3% increase in quarter three. The U.S. exports have seen 5.8% growth due to a demand for a more stable U.S. dollar. This was a major turn from a 4.5% drop in the last