ITALY – THE WORLD´S 8TH

LARGETS ECONOMY

BUSINESS SWEDEN

Milano

June 2015

EXECUTIVE SUMMARY

As the 8th largest economy in the world, Italy is much

more than just fashion and food. The “Made in Italy”

concept is famous in many industries all over the world

for quality, innovation and handcraft. Italy is still has the

second largest manufacturing industry in the EU after

Germany.

Even through the toughest years during the various

economic crises, Italian companies managed to

increase their turnover on foreign markets, and has

maintained it´s leading position in many industries. To

stay competitive as a nation, Italy has also started many

projects to develop the infrastructure and energy sector,

projects that will be completed in the nearby future.

There are more than 180 Swedish companies

established In Italy, and there is a huge amount of

companies doing business through partners.

With a positive forecast for 2015, a growing GDP and a

higher inflow of FDI, Italy is a country to keep an eye on!

BUSINESS SWEDEN IN ITALY

Business Sweden’s office in Milan has six employees with

extensive market knowledge and long experience within all

the Swedish and Italian key industries.

Over the last years we have supported business entries in

various sectors, such as Healthcare, Energy and

Environmental Technologies, ICT, Textile, Automotive and

Transport Systems, just to mention a few.

We have a strong local network thanks to over 30 years of

work experience from the Italian market.

Welcome to Italy!

13 OCTOBER, 2015 BUSINESS SWEDEN 2

ITALY – EXECUTIVE SUMMARY

ITALY IS THE FOURTH LARGEST ECONOMY IN EU

Källa: Istat 2014, Eurostat, the world bank

BUSINESS SWEDEN

In the world, Italy is the 8th largest economy with 2,8

% of the worlds GDP.

Italy’s GDP 2014 was EUR 1 600 Bn, corresponding

to 12 % of EU total GDP.

After a long period of negative growth, Italy is now

forecasted to have a GDP growth of +0,6% in 2015.

The stagnation of the GDP during the crisis is not a

result from a lack of ability by the companies to seize

opportunities in the global marketplace; During 2008 -

2014 the foreign turnover has increase with +10,8%,

while the domestic market has fallen with -17,9%.

Real GDP growth (%)

-3

-2,5

-2

-1,5

-1

-0,5

0

0,5

1

1,5

2

2010 2011 2012 2013 2014 2015f 2016f 2017f 2018f 2019f

-10

-5

0

5

10

15

20

25

30

35

FDI inflows

13 OCTOBER, 2015 BUSINESS SWEDEN 4

ITALY WAS RANKED THE WORLD’S 20TH MOST

ATTRACTIVE DESTINATION FOR FDI IN 2013

SOURCES: OECD

THE FLOW OF FOREIGN DIRECT INVESTMENTS

BN, EURO

LARGEST SECTORS OF FDI INFLOW

Mining and quarrying

Manufacturing of vehicles

Manufacturing of textile, apparel

Construction

Manufacturing of chemicals

Due to the global

economic crisis in

2008 Italy’s FDI inflow

dropped rapidly

In 2013 the inflow was

EUR 18 Bn, a increase

with +1174% compare to

the previous year.

Reaching a

record FDI in

2006 of EUR

31 Bn

MAIN COUNTRIES OF FDI INFLOW (EUR)

Netherlands (3,7Bn)

China (3,3Bn)

France (3,3Bn)

Luxembourg (2,3Bn)

Spain (1,6Bn)

Switzerland (1,1Bn)

51

53

57

71

74

107

110

0 20 40 60 80 100 120

Textile and Apparel

Chemicals

Metals

Mining and Quarrying

Vehicles

Food products

Machinery and Equipment

Italy’s top industries – Turnover EUR Bn

BUSINESS SWEDEN 13 OCTOBER, 2015 5

MACHINERY AND EQUIPMENT IS THE LARGEST

INDUSTRY IN ITALY – IT IS AN ENGINEERING NATION

SOURCES: ISTAT

BOTH MACHINERY AND EQUIPMENT AS WELL AS FOOD PRODUCTS REACH OVER EUR 100 BN IN TURNOVER

NORTHERN ITALY IS THE COUNTRY’S ENGINE

> 30 000

24 000 – 30 000

18 000 – 24 000

< 18 000

GDP per capita (€) 2013

Naples

Rome

Milan

Källa: Istat 2014

BUSINESS SWEDEN

This is where most of the industries and the financial sector are concentrated

Italy has 61 millions inhabitants. Rome, Milan and

Naples are the largest cities.

The average income in the north of Italy is 50%

higher than the EU average, and almost double

compared to the south.

Northern Italy stands for 70% of the import and

75% of the export.

Italy’s economy is dominated by SME’s and 90% of

the companies have fewer than ten employees

ITALIAN COMPANIES ARE OFTEN INCLUDED IN ONE

OF THE OVER 200 DIFFERENT INDUSTRIAL CLUSTERS

Rome

Naples

BUSINESS SWEDEN

Milan

Lombardy - examples

• Bergamo: Industrial machinery

• Brescia: Machinery

• Como: Silk

• Castel Goffredo: Nylon stocking

Piemonte - examples

• Biella: Textile

• Turin: Automotive, Robots

Veneto - examples

• Cadore: Eyeglasses (Luxottica)

Emilia Romagna - examples

• Bologna: Packaging products

• Reggio Emilia: Electro mechanics

• Cento: Industrial machinery

• Carpi: Wood machinery

Liguria - examples

• Sebino Bergamasco: Rubber

Tuscany - examples

• Prato: Textile, shoes

THE CLUSTERS ARE OFTEN WORLD LEADING WITHIN THEIR SECTOR

Basilicata - examples

• Matera: Furniture

BUSINESS SWEDEN 13 OCTOBER, 2015 8

GERMANY AND FRANCE ARE THE LARGEST TRADE

PARTNERS TO ITALY

SOURCES: ITC

ITALY EXPORTED FOR A VALUE OF EUR 397 BN AND IMPORTED FOR A VALUE OF EUR 355 BN IN 2014

Import

TOP 5 IMPORT COUNTRIES (EURO)

Germany (55 Bn)

France (31Bn)

China (25Bn)

Netherlands (20Bn)

Spain (17Bn)

TOP 5 EXPORT COUNTRIES (EURO)

Germany (50Bn)

France (42Bn)

United States of America (30Bn)

United Kingdom (21Bn)

Switzerland (19Bn)

Export

Import and export

EXAMPLES OF SWEDISH COMPANIES DOING BUSINESS IN ITALY

BUSINESS SWEDEN 13 OCTOBER, 2015 9

OVER 180 SWEDISH COMPANIES HAVE A LOCAL

ESTABLISHMENT IN ITALY

SOURCE. BUSINESS SWEDEN, ASSOSVEZIA

Large sized companies Small and medium

sized companies

Local production

activities

Ericsson

ABB

SKF

H&M

IKEA

Volvo Trucks

Atlas Copco

Astra Zenica

Systemair

Scania

Getinge

Alfa Laval

Electrolux

Elos

Axis

AQ group

Nynäs

Infor

Ekman & Co

Betsson

Meda

Alfa Laval

SKF

Gunnebo

Tetra Pak

Tule

Electrolux

THERE IS ALSO A VERY LARGE AMOUNT OF SWEDISH COMPANIES REPRESENTED THROUGH PARTNERSHIPS

EXAMPLES OF INTERESTING PROJECTS TO BE

DEVELOPED IN THE NEAR FUTURE

Rome

Naples

BUSINESS SWEDEN

Milan

High speed train

Trenitalia´s new Frecciarossa 1000 trains

between Rome and Milan has a speed

limit of 400km/h. The entire fleet of 50

trains will be completed and delivered in

the first months of 2017.

Develop Lazio’s ports

The three ports near Rome will undergo a big

reconstruction. The work will start at the container

terminal in Civitavecchia. The project will cost €586 M

and when completed, the terminal will allow the

movement of one million TEU each year.

Broadband revolution

In 2020 at least 50% of Italian households will

be subscribing to services of 100 megabit per

second. Telecom Italia has signed an agreement

with competitor Fastweb to test a fiber-and-

copper technology for fast Internet connection.

High technology power plant installed

In the end of 2014, Enel Green Power

has completed and connected to the grid

its new geothermal power plant. The plant

has installed capacity of 40 MW and will

be able to generate up to 310 million kWh

per year

Tuscany

Sources: Ansa, Il sole 24 ore, ENEL, Italian good news, TAP, SBB

New gas pipeline

In 2016 the Trans Adriatic Pipeline (TAP) will start the

construction of the new pipeline from Azerbaijan to

Italy. The pipeline will be ready to transport gas in

2020.

The world longest train tunnel

The Gotthard base tunnel in the alps is to open in

2016.The project started in 1998 and will when it’s finish

allow a quicker and more reliable transport of cargo,

faster passenger service and 50 % greater rail capacity

between Switzerland, Germany and Italy

HEALTH CARE & LIFE SCIENCES

Example: sector is always in need of

cost -efficient solutions and innovative

products

MATERIALS & MANUFACTURING

Example: Oil& Gas sector is investing

in new projects, in general also

interesting as Italy is the second largest

manufacturing industry in Europe

TRANSPORTATION & AUTOMOTIVE

Example: Swedish companies have

very good reputation in general. FCA

group recently hired 1500 people, also a

large logistical market.

TELECOM & IT

Example: M- & E-commerce grows with

+17%. The € 6Bn investment in broadband

from the Government, expects to attract €6

Bn from private investors

BUSINESS SWEDEN 13 OCTOBER, 2015 11

SOME OTHER EXAMPLES OF WHAT IS GOING ON IN

SEVEN HIGH POTENTIAL INDUSTRIES

SECURITY & DEFENCE

Example: Cash handling services,

surveillance systems, civil security

ENERGY & ENVIRONMENTAL TECH.

Example: Large subventions for

electric production to substitute oil &

gas etc.

RETAIL & CONSUMER PRODUCTS

Example: Italy offers a window to the

world within Design & Fashion.

Sourcing of “Made in Italy” is growing.

Private consumption also growing

again

FOR MORE INFORMATION ABOUT YOUR SPECIFIC INDUSTRY PLEASE CONTACT US

BUSINESS SWEDEN 14 MAY, 2013 12

IT MIGHT BE LESS KNOWN, BUT ITALY IS ALSO WORLD

LEADER IN THESE SECTORS

SOURCE: ICE

ENERGY EFFICIENCY PROGRAMS

According to the American Council for an Energy Efficient Economy, Italy

ranks second worldwide in the development of energy-efficiency programs

GLASS INDUSTRY

Italy is the world's top producer of machinery for the

glass industry. COSMETICS INDUSTRY

Italy's cosmetics industry produces more

than 60% of the make-up products sold

worldwide.

JEWELLERY

The country is the world's third largest producer of worked gold and

fifth in terms of exports, with 75% of its production going abroad

CHEMICAL INDUSTRY

Italy ranks third in Europe in the chemicals sector. The growth of the

exports in the fine and specialty chemicals industry is the highest

among Europe's major producers.

WAREHOUSE MANAGEMENT SYSTEM

Italy is the world leader in the field of automatic warehouse handling systems. The

Italian companies already provides next-generation goods handling systems for

industrial plants.

Made in Italy is a merchandise label indicating that a

product is all planned, manufactured and packed in Italy.

Made in Italy products that can be certified now range

from fashion accessories and handbags to furniture and

toys, religious objects and many more.

“Made in Italy” industrial districts are 130, that is 92.2%

of total industrial districts in Italy

They are mainly focused on mechanical sectors

(27%), textiles and clothing (22.7%), personal goods

(17%) and leather and foot-wear (12.1%).

BUSINESS SWEDEN 13 OCTOBER, 2015 13

ITALY IS ALSO AN ATTRACTIVE SOURCING COUNTRY

WITH VERY GOOD REPUTATION

SOURCE: MADE IN ITALY, IL SOLE 24 ORE, ISTAT

“Made in Italy”

Italian shoes were the

first to benefit from the

"100% Made in Italy"

mark.

“Made in Italy”

production - Sweden’s

Alfa Laval secures a

€30 million order for its

Italian factory.

“MADE IN ITALY” ARE KNOWN ALL OVER THE WORLD FOR ITS QUALITY, DESIGN AND INNOVATION

Business Sweden

Ufficio Commerciale dell'Ambasciata di Svezia

Via Maurizio Gonzaga 7

IT-20123 Milan , Italy

T +39 02 86 39 81

F +39 02 72 00 13 39

italien@business-sweden.se

www.business-sweden.se/italien

CONTACT US

BUSINESS SWEDEN IN ITALY