Economic Growth in Italy and What it means for international students
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Known as the world’s ninth-largest economy, Italy is the heart and soul of the luxury goods manufacturing market. The services sector accounts for 65% of Italy’s GDP but only 30% of the people in Italy are offered employment annually across its in-house industries. The manufacturing sector covers the remaining 25% of GDP in Italy, mostly run by small-scale enterprises or by heirlooms, yet holds expertise in areas of textiles, machinery, furniture and industrial design manufacturing. This, in turn, contributes towards 24% of major exports to countries like Germany and France, the USA and other countries which depend on Italy at large.
Due to the ongoing war between Russia and Ukraine, Italy’s imports have fallen to a great extent since it relies on Russia for its fuel. Further, the economy of Italy slowed down by 2% during the COVID-19 restrictions and the tourism sector came crashing leaving the economically distressed and difficult to recover with the increase in inflation by at least 2.3% in 2021. But by the end of 2021, Italy's economy was able to recover its losses by 6.5%. For 2023, it is expected that Italy's economy would average around 2.3% in comparison to 4.1% in 2022. The growth in the economy for the year 2022 is predicted around 2.5%.
Check: Popular Jobs in Italy
Economic Overview of Italy
The economic overview of Italy is based on various parameters that go into calculating the GDP of a country, for instance, the annual sales, manufacturing, consumption, import and export and the final inflation rate. The year 2019 sees a setback and has witnessed the worst hit in comparison to the previous years, read on for more stats:
| Italy Economy Parameters |
2019 |
2020 |
2021 |
|---|---|---|---|
| Population |
60.4 million |
59.5 million |
59.2 million |
| Per Capita GDP |
€29,611 |
€31,835 |
€35,551 |
| GDP (billion) |
€1,787 |
€1,893 |
€2,100 |
| Annual GDP Growth |
-9.53% |
-9.03% |
6.64% |
| Industrial Production |
-1% |
0.7% |
1.3% |
| Retail Sales |
0.8% |
-27.5% |
35% |
| Unemployment Rate |
9.95% |
9.16% |
9.83% |
Some key takeaways from the above-given data covering the economic overview of Italy in comparison to the years 2019, 2020 and 2021 are as follows:
- The population of Italy has declined by 0.38% from 2019 to 2020 and by 0.44% from 2020 to 2021 after the COVID-19 pandemic.
- The per capita GDP of Italy reduced by 5.46% in 2020 from 2019 but there was a boom in the second half of 2021 recording a whopping increase of 11.67% after the borders opened after a pandemic for tourists.
- The GDP of Italy again saw a diminishing economy by 5.9% from 2019 to 2020, but an increase of 10.95% was also noted in the year 2021 from 2020.
- Since the economy of Italy was severely hit in the year 2020, recording a -9.03% decline, only 2.39% was recovered in the year 2021 in terms of annual GDP growth.
- Industrial growth improved in Italy by 2% after 2020, and as of October 2021, the growth is expected to reach another 3%.
- Retail sales have increased since 2020, in 2021 the sales have reached a new pinnacle of 34% in Italy.
- The unemployment rate in Italy stands worse from 2019 to 2020 and even worse for 2021, at present accounting for 9.83% in 2021.
What does this mean for international students?
The unemployment rate in Italy is a concern for international students since the rates have increased by 0.53% in 2021 from 2020. One of the major reasons why an international student would choose to study in Italy is because he/she would look for full-time job prospects to support themselves and calculate their ROI too. But the declining rates of employment, plus the unending war between Russia and Ukraine is another setback for Italy's economy.
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Another reason for Italy’s economy slowing down is the increase in the inflation rate plus the out-of-proportion increase in the Rouble has further created doubt about whether or not to choose Italy as a study destination. Students choose Italy because it is cheaper in comparison to other European nations, but there seems to be a big gap here which is expected to be covered up through Italy’s Recovery and Resilience Plan which is expected to create around 240,000 jobs by 2026.
At present, Italy is trying to fight harder to survive its economy on its previous years' trade surplus. Still, the increasing demands for fuel and other necessary items from Russia are only making it a little more difficult to cope. Thus, international students are required to exercise caution in terms of their calculations like the cost of studying in Italy along with the cost of living in Italy if decided to pursue higher education at Italian universities only.
At present, there are 5,000 students studying in Italy from India, and it is likely that the numbers would go up in 2023 and 2024. The reason why more and more Indian students would take up education in Italy is that it's cheaper than other European countries secondly, Italy in collaboration with India plan to create more opportunities for Indian students to work and research in Italy through various exchange programs. Plus, the manufacturing and retail sales sector in Italy are recording a positive growth post-pandemic, hence it would not be incongruous to say that better career prospects and job opportunities await international students in Italy in the upcoming five years.
Read: International Student Guide for Italy
Economic Growth in Italy FAQs
Q. What helped Italy's economy to recover after the pandemic?
A. After the pandemic. Italy's economy recovered through consumer spending, household savings getting back to the pre-pandemic rates and a slight improvement in the labour market.
Q. How much is the GDP expected to average in 2022 and 2023 in Italy?
A. The real GDP growth in Italy is expected to average around 4.1% in the year 2022 and 2.3% in the year 2023. Note - the real GDP would calculate minus the inflation or deflation rates.
Q. Why has the inflation rate increased in Italy after 2021?
A. The reasons for increase in inflation rates since 2021 in Italy is due to increase in cost of energy consumption leading to an increase in food prices, plus the slack in the labour market are being experienced. Thus, inflation is set to rise to 3.8% for the year 2022 and may fall back to 1.6% in the year 2023 in Italy.
Q. What is n Italy’s Recovery and Resilience Plan?
A. Italy’s Recovery and Resilience Plan consists of certain investments and reforms that would be beneficial to sustain the economy in the longer run. This plan would consist of funding across digital, environment plus the economic and social resilience sectors.
Q. How many jobs are predicted to open up in Italy by 2026 through the Recovery and Resilience Plan?
A. As per the details, Italy’s Recovery and Resilience Plan can create up to 240,000 jobs by the year 2026 and also lift the GDP by 1.5% to 2.5% in turn, for the year 2026.
Q: Â What is the acceptance rate for Istituto Marangoni Italy?
According to a few unofficial sources, Istituto Marangoni acceptance rate is around 80%. This means that the institute is not too selective at the time of granting admissions. As per an unofficial source, about 67% of BA students at Istituto Marangoni are international. If the acceptance rate is considered to be around 80%, then it means that students having a good academic background and meeting all the requirements have a higher chance of getting admission.
Q: Â Why do Indian students choose to study at Istituto Marangoni - Italy?
Indian students choose to study at Istituto Marangoni in Italy for several reasons. With a broad choice of undergraduate and graduate executive programs in business, fashion, and design offered by Istituto Marangoni, students have the chance to collaborate on industry projects with renowned businesses and establish high-level connections with the fashion and luxury sectors. Students who wish to work in the fashion and design industries find the school's approach appealing as it combines the newest trends, industry advancements, and practical skills. The possibility to work on real-life industrial projects and the association with the prominent fashion company N21 are other factors that make Istituto Marangoni a desirable option for Indian students.
Q: Â How can I get admission to the Sapienza University of Rome?
Sapienza University of Rome offers a number of certificates, diplomas and degree programmes at the undergradaute and postgradaute levels .To get Sapienza University, international students must meet the course-specific and general admission requirements. Check below the general admission requirements for international students are:
- International applicants must have a high schoolDiplomaearned after at least 12 years of study for a Bachelor’s program
- International applicants must have at least a 3-year bachelor’s degree from arecogniseduniversity in a relevant discipline for a Master’s program
- Students must have at least an upper-intermediate knowledge of English or Italian (B2 level), depending on their chosen program
- Proficiency in the English language
Q: Â Is Istituto Marangoni, Italy cheaper than Istituto Europeo di Design?
Istituto Marangoni in Italy offers a range of fashion design courses with varying tuition fees. For example, the tuition fee for the MA in Fashion & Luxury Brand Management is $31,500 per year, and the tuition fee for the MA in Fashion Styling, Creative Direction & Digital Content is $30,900 per year. On the other hand, IED Istituto Europeo di Design offers undergraduate programs with tuition fees ranging from $16,124.90 per year to $32,249.79 for international students. Therefore, the tuition fees at Istituto Marangoni can be higher or lower than IED, depending on the specific programme and duration chosen.
Q: Â Which university is better to study as an international student in Italy, University of Pavia or the University of Bologna?
University of Pavia or the University of Bologna offer unique campus cultures and academic programs. While they share a great reputation, there are subtle differences between the two universities. The below table compares the rankings, fees and acceptance rates of University of Pavia or the University of Bologna . Overall this information could be useful for students who are considering them.
Here is the comparison highlighting the differences between the Universities:
Name of The University | Ranking | Acceptance Rate | 1st Year Tuition Fee |
University of Pavia | #469 | 50% | INR 36K |
University of Bologna | #154 | 73% | INR 54K- 1L |
Q: Â Is Bocconi University, Italy a better option than IIM Ahmedabad for doing MBA?
Both Bocconi University in Italy and IIM Ahmedabad are prestigious institutions for pursuing an MBA. According to the Financial Times Global MBA Ranking 2023, SDA Bocconi School of Management is ranked 6th, while the Indian Institute of Management Ahmedabad is ranked 51st. SDA Bocconi's MBA programme is known for its high international mobility rank, strong alumni network, and a significant salary percentage increase after graduation. On the other hand, IIM Ahmedabad is recognised for its excellent career progress rank and high overall satisfaction. The choice between the two institutions depends on various factors such as career goals, location preferences, and specific programme offerings. It is important for prospective students to carefully consider their individual priorities and conduct thorough research before making a decision.
Q: Â Is the Sapienza University of Rome good?
Yes, the Sapienza University of Rome is one of the finest and among the best universities in the world. Sapienza University of Rome rankings consistently puts Sapienza University among the top universities globally and nationally. The QS World University Rankings 2024 ranked the Sapienza University of Rome #134 in the world. Meanwhile, the Times Higher Education (THE) World University Rankings 2024 ranked the Sapienza University of Rome in the range of #181 in the world. Also, the U.S. News and World Report 2023 ranked the university #125 among the global universities
Q: Â What is the ranking of the Sapienza University of Rome for MBA?
The Sapienza University of Rome offers a variety of MBA programs to international students. Sapienza University of Rome programmes in the business and management are recognised all over the world. The Times Higher Education (THE) World University Rankings 2023 ranked Sapienza University in the range of #201-250 for its business and economics programmess. Sapienza University has improved its rankings significantly from last year’s #251-300 in the same category.
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