Country profile
Italy
The EU's second-largest manufacturer, exporting machinery, pharmaceuticals, vehicles and electrical equipment.
Updated 10 November 2026. Sources at the bottom of the page.
- Capital
- Rome
- Population
- 58.9 million (2026)
- Currency
- Euro (EUR)
- GDP, 2026
- US$2.70 trillion
- Exports, 2025
- US$726.6 billion
- Exchange rate
- 1 EUR = 1.12 USD (9 Nov 2026)
Economy
IMF World Economic Outlook, October 2026. 2026 and 2027 are IMF projections.
0.8%Real GDP growth, 2026
0.6%Real GDP growth, 2027
3.3%Inflation, 2026
5.6%Unemployment, 2026
137.9% of GDPGovernment debt, 2026
0.7% of GDPCurrent account, 2026
Trade
Top export markets
Share of the country’s exports, 2025
- Germany (11.1%)
- United States (10.6%)
- France (10%)
- Spain (5.9%)
- Switzerland (5.5%)
Main exports
Product groups, share of exports
- Machinery, including computers (16.7%)
- Pharmaceuticals (10.4%)
- Vehicles (6.5%)
- Electrical machinery and equipment (6.4%)
- Gems and precious metals (4.4%)
Main trade agreements
- EU single market
- EU agreements including CETA (Canada), EU–Japan, EU–Korea, EU–Mexico and EU–Vietnam
- EU–UK Trade and Cooperation Agreement
Trade policy to watch
- EU Carbon Border Adjustment Mechanism (CBAM): in its definitive phase since 1 January 2026 for imports into the EU of iron and steel, aluminium, cement, fertilisers, electricity and hydrogen.
- EU trade policy: no tariffs inside the EU; trade with non-EU countries is set at EU level.
- Gas supply: since 2022, Italy has replaced most Russian gas with pipeline gas from Algeria and Azerbaijan and with LNG.
Energy
Natural gas and oil are Italy's largest energy sources, and almost all of them are imported. Gas is also the largest source of electricity, followed by renewables. Italy has no nuclear power plants.
What it means for your supply chain
- Importers of steel, aluminium and other CBAM goods into Italy need emissions data from their non-EU suppliers.
- Many Italian suppliers are small and mid-sized family firms, often grouped in regional industrial districts.
- Electricity and gas prices are among the higher ones in Europe, which matters for energy-intensive producers.
Sources
- IMF, World Economic Outlook, October 2026: GDP, growth, inflation, unemployment, government debt, current account (2026 and 2027 are projections).
- IMF, World Economic Outlook database: population (2026 estimate).
- World’s Top Exports, 2025: export markets and main exports.
- Bank of Canada, daily exchange rates, 9 November 2026 (cross rates calculated from CAD rates).
- Energy Institute, Statistical Review of World Energy 2026: energy profile.
- European Commission, Carbon Border Adjustment Mechanism.
Figures are the latest published at the time of the update and may since have been revised. This page is for general information, not investment or legal advice.