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2005 OECD Economic Surveys: Italy 2005

image of OECD Economic Surveys: Italy 2005

OECD's periodic survey of Italy's economy. This issue examines key policy challenges including continuing adjustment to the EMU, fiscal reform, enhancing corporate governance and the functioning of financial markets, migration, and reforms to expand employment and productivity.

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Economic Performance and Policy Challenges

This chapter discusses recent macroeconomic performance in Italy and its linkages to structural policies. Unemployment dropped markedly as labour deepening occurred in response to labour market reforms. But despite strong employment growth, output growth has been weak because of a sharp drop in total factor productivity growth.

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