APPENDIX A: COUNTRY DATA 1. PROFILE - POPULATION: 57.2 MILLION (1993 DATA) - POPULATION GROWTH RATE:0.34 PERCENT - RELIGION(S): MOST ITALIANS ARE ROMAN CATHOLIC - GOVERNMENT SYSTEM: PARLIAMENTARY REPUBLIC - LANGUAGES: ITALIAN. GERMAN IS THE OFFICIAL SECOND LANGUAGE IN ALTO ADIGE (SOUTH TYROL). FRENCH IS THE OFFICIAL SECOND LANGUAGE IN VALLE D'AOSTA. - WORK WEEK: 38.6 HOURS/WEEK MON-SAT 2. DOMESTIC ECONOMY (1993, ACTUAL, 1994 AND 1995 ESTIMATE) - (USD MILLIONS) 1993 1994 1995 - GDP AT CURRENT PRICES 992,439 982,648 1,041,944 - REAL GDP GROWTH RATE (PERCENT) -0.7 1.5 2.2 - GDP PER CAPITA (USD) 17,368 17,662 18,844 - GOVERNMENT SPENDING AS - PERCENTAGE OF GDP 57.2 55.5 54.9 - INFLATION (PERCENT) 4.2 3.9 3.5 - UNEMPLOYMENT (PERCENT) 10.4 11.2 11.0 - FOREIGN EXCHANGE RESERVES 51,153 79,244 120,057 - AVERAGE EXCHANGE RATE - FOR USD 1.00 1,572 1,625 1,615 - FOREIGN DEBT 50,123 57,578 62,607 - DEBT SERVICE RATIO 10.1% 10.0% 9.9% 3. TRADE (1993, ACTUAL, 1994 AND 1995 ESTIMATE) - (USD MILLIONS) 1993 1994 1995 - TOTAL COUNTRY EXPORTS 169,630 179,156 199,195 - TOTAL COUNTRY IMPORTS 147,772 148,646 160,522 - EXPORTS TO U.S. 13,034 13,848 15,394 - IMPORTS FROM U.S. 7,855 7,901 8,533 U.S. SHARE OF HOST COUNTRY IMPORTS OF MANUFACTURED GOODS 1993 1994 1995 - TOTAL (FROM WORLD) 119,912 120,622 130,259 - TOTAL FROM THE U.S. 7,364 7,418 8,019 - U.S. SHARE OF MANUFACTURED - IMPORTS 6.1% 6.2% 6.2% - MANUFACTURED GOODS TRADE - BALANCE WITH U.S. 5,642 6,401 7,342 - PROJECTED AVERAGE ANNUAL - GROWTH RATE FROM WORLD - THROUGH 1996 -2.1% 4.0% 7.3% - PROJECTED AVERAGE ANNUAL - GROWTH RATE FROM U.S. - THROUGH 1996 1.0% 4.1% 7.4% IMPORTS OF AGRICULTURAL GOODS 1993 1994 1995 - TOTAL (FROM WORLD) 9,578 9,635 10,405 - FROM THE U.S. 481 469 491 - U.S. SHARE OF AGRICULTURAL - IMPORTS 5.0% 4.9% 4.7% - AGRICULTURAL GOODS TRADE - BALANCE WITH U.S. -454 -440 -459 TRADE BALANCE WITH THREE LEADING PARTNERS IN 1993 - GERMANY 4,212 3,422 2,719 - UNITED KINGDOM 2,171 1,209 1,510 - FRANCE 2,006 1,916 1,812 PRINCIPAL U.S. EXPORTS (F.A.S.) - 1. AIRCRAFT & ASSOCIATED 486 510 550 EQUIPMENT - 2. COAL 307 310 315 - 3. MEDICINAL PRODUCTS 296 320 330 - 4. ADP & UNITS - 5. MEASURING EQUIPMENT 277 300 310 PRINCIPAL U.S. IMPORTS (C.I.F.) - 1. JEWELRY, GOLD/SILVER 1,302 1,400 1,450 - 2. FOOTWEAR 760 850 920 - 3. FURNITURE 426 500 530 - 4. OIL FROM MINERALS 343 410 480 - 5. MOTOR VEHICLE PARTS & 340 350 355 ACESSORIES SOURCES: BANK OF ITALY, ISTAT, ISCO, EMBASSY FORECAST, USDOC 4. INVESTMENT TABLE 1: FOREIGN DIRECT INVESTMENT INFLOWS BY ECONOMIC SECTOR (NET) 1990-1993 (MILLIONS OF DOLLARS) (1) 1990 1991 1992 1993 AGRICULTURE 0.8 -2.4 2.4 3.2 ENERGY 208.7 -83.7 396.9 193.4 INDUSTRY 397.3 2,166.0 1,508.9 1,751.9 OF WHICH: MECHANICAL 746.2 24.2 78.7 248.7 CHEMICAL 40.1 926.7 51.9 410.9 FOOD 645.2 108.8 460.2 163.5 TEXTILES -111.9 59.6 -6.5 18.4 MINERAL/METAL 135.2 61.2 129.9 234.1 OTHER -1,057.6 985.5 794.6 676.2 BUILDING AND PUBLIC WORKS -524.2 23.4 -13.8 7.6 SERVICES 6,235.4 436.7 1,307.6 1,623.4 OF WHICH: BANKING/ INSURANCE 5,945.9 119.3 1,340.1 1,180.0 TRADE 482.5 72.5 35.7 -83.3 TRANSPORTATION/ COMMUNICATION -110.2 24.2 6.5 40.7 OTHER SERVICES (NOT FOR SALE) -82.6 220.8 -74.7 486.0 T O T A L 6,418.0 2,539.9 3,202.1 3,579.5 (1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF Italy DATA AND CONVERTED AT THE FOLLOWING AVERAGE EXCHANGE RATES: 1990 1991 1992 1993 LIRA/DOLLAR 1,198 1,241 1,233 1,572 NET = NEW INVESTMENT LESS DISINVESTMENT TABLE 2: ITALIAN DIRECT INVESTMENT OUTFLOWS BY ECONOMIC SECTOR (NET) 1990-1993 (MILLIONS OF DOLLARS) (1) 1990 1991 1992 1993 AGRICULTURE .0 -66.1 13.0 -4.5 ENERGY 144.4 103.9 103.9 -286.4 INDUSTRY 1,638.6 1,722.0 747.6 2,392.5 OF WHICH: MECHANICAL 510.0 838.0 11.4 834.6 CHEMICAL 118.5 52.4 -103.1 -51.5 FOOD 261.3 56.4 787.3 649.5 TEXTILES 175.3 245.8 40.6 64.9 MINERAL/METAL 189.5 40.3 258.9 82.1 OTHER 384.0 489.1 -247.6 813.0 BUILDING AND PUBLIC WORKS -295.5 198.2 -190.7 80.2 SERVICES 5,168.6 4,711.5 4,950.5 4,762.7 OF WHICH: BANKING/ INSURANCE 4,518.4 4,164.4 4,463.5 4,462.5 TRADE -134.4 148.3 -114.4 29.3 TRANSPORTATION/ COMMUNICATION 156.9 101.5 535.7 -29.3 OTHER SERVICES (NOT FOR SALE) 627.7 297.3 65.7 300.3 T O T A L 7,247.1 6,669.6 5,624.2 6,952.5 (1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF Italy DATA AND CONVERTED AT THE FOLLOWING AVERAGE EXCHANGE RATES: 1990 1991 1992 1993 LIRA/DOLLAR 1,198 1,241 1,233 1,572 NET = NEW INVESTMENT LESS DISINVESTMENT TABLE 3A: STOCK OF FOREIGN DIRECT INVESTMENT IN ITALY BY MAJOR INVESTORS; YEAR END 1990-1993 (MILLIONS OF DOLLARS) (1) 1990 1991 1992 1993 UNITED STATES 8,277.0 8,179.8 6,953.8 5,817.5 EU 29,088.5 30,785.4 25,583.3 22,674.9 OF WHICH: FRANCE 7,685.0 8,261.5 7,161.8 5,808.1 NETHERLANDS 6,390.3 6,566.5 5,311.4 4,809.9 UNITED KINGDOM 6,296.5 6,318.9 5,032.6 4,092.7 GERMANY 4,634.5 4,552.6 3,661.5 3,142.6 LUXEMBOURG 3,063.7 3,982.6 3,532.3 3,803.4 SPAIN 92.9 183.3 174.4 168.4 OTHER EU 925.6 920.0 709.0 849.8 SWITZERLAND 14,331.9 14,146.0 11,044.9 9,406.1 SWEDEN 1,714.2 1,686.4 1,394.3 1,568.7 LIECHTENSTEIN 1,084.1 1,102.5 862.0 1,094.5 JAPAN 894.7 924.4 768.2 890.8 ARGENTINA 140.7 139.9 110.1 96.8 BRAZIL 29.2 16.5 12.2 15.8 OTHER 2,432.6 2,692.4 2,605.2 10,933.7 T O T A L 29,088.5 30,785.4 25,583.3 22,674.9 (1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF ITALY DATA AND CONVERTED AT THE FOLLOWING END YEAR EXCHANGE RATES: 1990 1991 1992 1993 LIRA/DOLLAR 1,130 1,151 1,471 1,704 TABLE 3B: STOCK OF FOREIGN DIRECT INVESTMENT IN ITALY BY MAJOR INVESTORS; YEAR END 1990-1993 (PERCENTAGE OF TOTAL) (1) 1990 1991 1992 1993 UNITED STATES 14.3 13.7 14.1 11.1 EU 50.2 51.6 51.9 43.2 OF WHICH: FRANCE 13.2 13.9 14.5 11.1 NETHERLANDS 11.0 11.0 10.8 9.2 UNITED KINGDOM 10.9 10.6 10.2 7.8 GERMANY 8.0 7.6 7.4 6.0 LUXEMBOURG 5.3 6.7 7.2 7.2 SPAIN 0.2 0.3 0.4 0.3 OTHER EU 1.6 1.5 1.4 1.6 SWITZERLAND 24.7 23.7 22.4 17.9 SWEDEN 2.9 2.8 2.8 3.0 LIECHTENSTEIN 1.9 1.9 1.7 2.1 JAPAN 1.5 1.6 1.6 1.7 ARGENTINA 0.2 0.2 0.2 0.2 BRAZIL 0.1 0.1 0.0 0.0 OTHER 4.2 4.5 5.3 20.8 T O T A L 100.0 100.0 100.0 100.0 TABLE 4A: STOCK OF ITALIAN DIRECT INVESTMENT ABROAD BY MAJOR RECIPIENT; YEAR END 1990-1993 (MILLIONS OF DOLLARS) (1) 1990 1991 1992 1993 UNITED STATES 5,375.2 5,873.1 4,455.5 4,784.0 EU 31,785.5 35,289.3 32,828.7 41,857.4 OF WHICH: LUXEMBOURG 9,361.1 9,978.7 8,764.8 8,098.0 NETHERLANDS 5,646.0 7,343.2 6,970.1 11,794.0 FRANCE 4,756.6 5,026.9 5,349.4 6,649.1 GERMANY 4,069.0 4,270.2 3,453.4 4,492.4 UNITED KINGDOM 3,289.4 4,695.9 3,728.8 5,352.1 SPAIN 3,390.3 3,615.1 3,133.9 3,423.1 OTHER EU 1,272.6 359.3 1,428.3 2,075.7 SWITZERLAND 6,456.6 7,064.3 5,359.6 5,098.0 BARZIL 3,184.1 3,165.9 2,480.6 2,191.3 ARGENTINA 1,262.0 1,314.5 1,034.0 1,162.0 JAPAN 694.7 617.7 455.5 642.6 SWEDEN 126.6 85.1 33.3 135.0 LIECHTENSTEIN 29.2 74.7 60.5 59.9 OTHER 7,199.6 9,222.6 6,840.2 17,861.5 T O T A L 56,112.4 62,707.2 53,547.9 73,791.7 (1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF ITALY DATA AND CONVERTED AT THE FOLLOWING END YEAR EXCHANGE RATES: 1990 1991 1992 1993 LIRA/DOLLAR 1,130 1,151 1,471 1,704 TABLE 4B: STOCK OF ITALIAN DIRECT INVESTMENT ABROAD BY MAJOR RECIPIENT; YEAR END 1990-1993 (PERCENTAGE OF TOTAL) (1) 1990 1991 1992 1993 UNITED STATES 9.6 9.4 8.3 6.5 EU 56.6 56.3 61.3 56.7 OF WHICH: LUXEMBOURG 16.7 15.9 16.4 11.0 NETHERLANDS 10.1 11.7 13.0 16.0 FRANCE 8.5 8.0 10.0 9.0 GERMANY 7.2 6.8 6.4 6.1 UNITED KINGDOM 5.9 7.5 7.0 7.2 SPAIN 6.0 5.8 5.8 4.6 OTHER EU 2.2 0.6 2.7 2.8 SWITZERLAND 11.5 11.3 10.0 6.9 BRAZIL 5.7 5.0 4.6 3.0 ARGENTINA 2.3 2.1 1.9 1.6 JAPAN 1.2 1.0 0.9 0.9 SWEDEN 0.2 0.1 0.1 0.2 LIECHTENSTEIN 0.1 0.1 0.1 0.1 OTHER 12.8 14.7 12.8 24.1 T O T A L 100.0 100.0 100.0 100.0 TABLE 5A: U.S. INVESTMENT IN ITALY BY ECONOMIC SECTOR OUTSTANDING END-YEAR 1990-1993 (MILLIONS OF DOLLARS) (1) 1990 1991 1992 1993 AGRICULTURE 12.4 0.9 0.6 2.9 ENERGY 450.4 442.2 344.0 335.7 INDUSTRY 4,760.2 4,695.9 4,210.7 3,814.6 OF WHICH: MECHANICAL 881.4 822.8 645.1 520.0 TRANSPORTATION EQUIPMENT 100.0 92.1 72.1 95.7 CHEMICAL 2,258.4 2,256.3 1,790.6 878.5 FOOD 389.4 383.1 299.8 375.6 TEXTILES 109.7 107.7 82.3 79.2 MINERALS/METALS 51.3 45.2 36.0 69.8 OTHER 970.0 988.7 1,284.8 1,795.8 SERVICES 3,054.0 3,040.8 2,398.4 1,664.3 OF WHICH: TRADE 448.7 440.5 344.7 189.6 BANKING/INSURANCE 1,783.2 1,799.3 1,420.8 956.0 TRANSPORTATION/ COMMUNICATION 85.0 86.0 69.3 143.2 OTHER SERVICES 737.1 715.0 563.6 375.6 T O T A L 8,277.0 8,179.0 6,953.8 5,817.5 (1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF ITALY DATA AND CONVERTED AT THE FOLLOWING END YEAR EXCHANGE RATES: 1990 1991 1992 1993 LIRA/DOLLAR 1,130 1,151 1,471 1,704 TABLE 5B: U.S. INVESTMENT IN ITALY BY ECONOMIC SECTOR OUTSTANDING END-YEAR 1990-1993 (PERCENTAGE OF TOTAL) 1990 1991 1992 1993 AGRICULTURE 0.2 0.0 0.0 0.1 ENERGY 5.4 5.4 4.9 5.8 INDUSTRY 57.5 57.4 60.6 65.6 OF WHICH: MECHANICAL 10.7 10.0 9.3 8.9 TRANSPORTATION EQUIPMENT 1.2 1.1 1.0 1.6 CHEMICAL 27.3 27.6 25.8 15.1 FOOD 4.7 4.7 4.3 6.5 TEXTILES 1.3 1.3 1.2 1.4 MINERALS/METALS 0.6 0.6 0.5 1.2 OTHER 11.7 12.1 18.5 30.9 SERVICES 36.9 37.2 34.5 28.6 OF WHICH: TRADE 5.4 5.4 5.0 3.3 BANKING/INSURANCE 21.6 22.0 20.4 16.4 TRANSPORTATION/ COMMUNICATION 1.0 1.1 1.0 2.5 OTHER SERVICES 8.9 8.7 8.1 6.5 T O T A L 100.0 100.0 100.0 100.0 TABLE 6A: ITALIAN INVESTMENT IN THE U.S. BY ECONOMIC SECTOR OUTSTANDING END-YEAR 1990-1993 (MILLIONS OF DOLLARS) (1) 1990 1991 1992 1993 AGRICULTURE 0.9 10.4 9.5 9.4 ENERGY 870.8 896.6 746.4 545.2 INDUSTRY 2,085.8 2,420.5 1,622.7 1,509.4 OF WHICH: MECHANICAL 1,003.5 1,279.8 1,085.0 900.2 TRANSPORTATION EQUIPMENT 118.6 141.6 108.8 86.3 CHEMICAL 511.5 510.9 10.9 39.3 FOOD 33.6 0.0 17.7 10.6 TEXTILES 213.3 220.7 181.5 159.6 MINERALS/METALS 51.3 50.4 45.5 68.1 OTHER 154.0 217.1 173.3 245.3 SERVICES 2,417.7 2,545.6 2.076.8 2,720.1 OF WHICH: TRADE 390.3 384.9 309.3 316.3 BANKING/INSURANCE 916.8 1,152.0 966.0 1,042.3 TRANSPORTATION/ COMMUNICATION 179.7 180.7 155.7 44.6 OTHER SERVICES 930.9 828.0 645.8 1,316.9 T O T A L 5,375.0 5,873.1 4,455.5 4,784.0 (1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF ITALY DATA AND CONVERTED AT THE FOLLOWING END YEAR EXCHANGE RATES: 1990 1991 1992 1993 LIRA/DOLLAR 1,130 1,151 1,471 1,704 TABLE 6A: ITALIAN INVESTMENT IN THE U.S. BY ECONOMIC SECTOR OUTSTANDING END-YEAR 1990-1993 (PERCENTAGE OF TOTAL) 1990 1991 1992 1993 AGRICULTURE 0.0 0.2 0.2 0.2 ENERGY 16.2 15.3 16.8 11.4 INDUSTRY 38.8 41.2 36.4 31.6 OF WHICH: MECHANICAL 18.7 21.8 24.4 18.8 TRANSPORTATION EQUIPMENT 2.2 2.4 2.4 1.8 CHEMICAL 9.5 8.7 0.2 0.7 FOOD 0.6 0.0 0.4 0.2 TEXTILES 4.0 3.8 4.1 3.3 MINERALS/METALS 1.0 0.9 1.0 1.4 OTHER 2.9 3.7 3.9 5.3 SERVICES 45.0 43.3 46.6 56.9 OF WHICH: TRADE 7.3 6.5 6.9 6.6 BANKING/INSURANCE 17.1 19.6 21.7 21.8 TRANSPORTATION/ COMMUNICATION 3.3 3.1 3.5 0.9 OTHER SERVICES 17.3 14.1 14.5 27.5 T O T A L 100.0 100.0 100.0 100.0 TABLE 7: DIRECT INVESTMENT BY ORIGIN AND DESTINATION OUTSTANDING END-YEAR 1993 (MILLIONS OF DOLLARS) (1) FOREIGN ITALIAN NET INVESTMENT INVESTMENT ITALIAN IN ITALY ABROAD POSITION USA 5,817.5 4,784.0 -1,033.6 SWITZERLAND 9,406.1 5,098.0 -4,308.1 EU 22,674.9 41,857.4 19,182.5 OF WHICH: UNITED KINGDOM 4,092.7 5,325.1 1,232.4 NETHERLANDS 4,809.9 11,794.0 6,984.2 GERMANY 3,142.6 4,492.4 1,349.8 FRANCE 5,808.1 6,649.1 841.0 SPAIN 168.4 3,423.1 3,254.7 LUXEMBOURG 3,803.4 8,098.0 4,294.6 BELGIUM 737.7 1,696.0 958.3 OTHER EU 112.1 379.7 267.6 SWEDEN 1,568.7 135.0 -1,433.7 LIECHTENSTEIN 1,094.5 59.9 -1,034.6 JAPAN 890.8 642.6 -248.2 CANADA 182.5 528.2 345.7 ARGENTINA 96.8 1,162.0 1,065.1 BRAZIL 15.8 2,191.3 2,175.5 OTHER 10,751.2 17,333.3 6,582.2 T O T A L 52,498.8 73,791.7 21,292.8 (1) ORIGINAL DATA IN LIRE AND CONVERTED AT THE END-1993 EXCHANGE RATE ONE DOLLAR EQUALS 1,704 LIRE. SOURCES: ITALIAN EXCHANGE OFFICE AND BANK OF ITALY ANNUAL REPORT 1993.