Italian Imports

Despite being the third largest economy in the Eurozone and an image as a global leader, Italy remains heavily dependent on imports to support its key sectors. However, these imports pose challenges in terms of dependency and trade balance.

Types of products imported by Italy and their origin

Italy, with its rich trading history, has always been a crossroads of exchanges between cultures and economies. Rapid industrialization has increased the need for imports of raw materials and technologies. With globalization, the country has integrated into global supply chains, which has increased its dependence on external resources. Today, to face current economic challenges, Italy still favors imports. Among the essential products imported by the country, there are three main categories, namely energy, manufactured goods and chemicals.

In terms of energy, Italy is heavily dependent on imports of crude oil and natural gas supplied mainly by Russia. Its value hovers around 82 billion euros. Concerning manufactured goods, imports include machinery, electronic equipment and vehicles from China and Germany worth around 70 billion euros. Imported chemicals include raw materials for pharmaceutical manufacturing and other industries. And products such as coffee, cocoa and some exotic fruits are also imported for consumer needs, although Italy is famous for its food production. The latter are imported mainly from France and the Netherlands.

The economic impact of Italian imports

The diversity of imports has significant effects on the Italian economy. On the one hand, it allows to meet the needs of the market and industry. On the other hand, a strong dependence can lead to economic risks, particularly in terms of trade balance and vulnerability to price fluctuations. In 2023, Italy reached a total import value of approximately 531 billion euros, which represents a significant share of the country's economy.

Energy imports had a direct impact on the price of natural gas between 2022 and 2023. Due to the war in Ukraine and tensions in the global energy market, Italy, which is heavily dependent on Russian gas imports, saw its energy costs explode. This led to an increase in production costs in industry, a slowdown in economic growth and an increase in inflation, which directly affected the purchasing power of consumers and businesses.

As for Italy's trade balance, it fluctuates between surpluses and deficits depending on the period. When the country records more imports than exports, particularly due to energy dependence, it shows a deficit, while the opposite produces a trade surplus.

However, Italy remains one of the world’s largest exporters, with a large surplus in sectors such as machinery, chemicals, and luxury consumer goods. This export dynamism helps to partly offset the high cost of its energy imports.

What sustainable strategy can Italy find to limit its external dependence before this vulnerability threatens its long-term economic stability?