Germany vs Italy development indicators, 2024

Demography and Health

Germany and Italy present notable contrasts in key demographic and health indicators. As of 2023, Germany's crude birth rate stands at 8.3 per 1,000 people, slightly higher than Italy's 6.4, which ranks Italy lower at 81 compared to Germany's 54. In terms of mortality, Germany's crude death rate is 12.3, higher than Italy's 11.2. However, life expectancy at birth is more favorable in Italy, at 83.7 years compared to Germany's 80.5 years. Interestingly, under-five mortality rates also show better outcomes for Italy (2.8 per 1,000 live births) compared to Germany (3.7). Furthermore, Italy's net migration rate is significantly stronger, with 95,246 people compared to Germany's 36,954, indicating Italy's attractive environment for migrants. Despite these differences, both countries face challenges with poverty; Germany's poverty headcount ratio is 14.8%, while Italy's is at 20.1%. An important note is that both countries have a prevalence of undernourishment at 2.5%, indicating a similar level of food security.

Economy

Germany boasts a robust economy characterized by high GDP per capita, projected at $55,800 for 2024, ranking 22nd globally, while Italy lags with a GDP per capita of $40,226, ranking 42nd. Furthermore, Germany excels in GDP per capita adjusted for purchasing power parity (PPP) at $72,300, as opposed to Italy's $60,847, which ranks at 39th globally. In terms of inflation, Germany is experiencing a rate of 2.3% whereas Italy’s inflation is significantly lower at 1%. Both countries maintain a similar level of consumer spending; however, Germany has a higher current health expenditure as a percentage of GDP at 11.8% against Italy's 8.5%. Moreover, Germany's unemployment rate is considerably lower, at 3.1%, compared to Italy's striking 7.6% rate. This disparity indicates a more favorable labor market in Germany.

Trade and Investment

Germany's economy is heavily export-oriented, with exports of goods and services constituting 42.1% of its GDP for 2024, whereas Italy's stands at 32.7%. This disparity is reflected in the rankings, with Germany at 88 and Italy at 106. High-technology exports significantly favor Germany, generating $255.7 billion, contrasting with Italy's $52.2 billion. Both countries have a similar import ratio of GDP, with Germany at 38.2% and Italy at 30.4%. However, Germany's foreign direct investment inflows indicate a strong capacity for economic engagement and development, standing at 1% of GDP against Italy's 0.9%. Notably, Germany shows a robust current account balance of 5.7% compared to Italy's 1.1%, underscoring Germany's favorable trade position.

Governance and Institutions

In terms of governance and institutional strength, Germany exhibits stronger performances across various indicators. It ranks higher in control of corruption (1.7) and government effectiveness (1.2) compared to Italy's respective scores of 0.6 for both indicators. The regulatory quality in Germany is also significantly better at 1.5 versus Italy's 0.6, demonstrating a more conducive environment for business operations. Moreover, Germany has a better rule of law index (1.6) compared to Italy (0.4). Both countries rank similarly on political stability and absence of violence/terrorism, both scoring 0.6, indicating a stable environment. Germany’s military expenditure also notably surpasses Italy's at $66.8 billion compared to $35.5 billion, reflecting its strategic priorities in defense and global engagement.

Infrastructure and Technology

When comparing infrastructure and technology, Germany stands out with a logistics performance index of 4.3, suggesting high-quality trade and transport-related infrastructure, while Italy's score of 3.8 ranks it lower. In research and development expenditure as a percentage of GDP, Germany is ahead at 3.1%, significantly surpassing Italy's low 1.4%. Additionally, Germany's innovation capacity is further illustrated by its leading position in patent applications, with 39,822 compared to Italy’s 10,281. This reflects a more favorable environment for technological advancement and innovation in Germany.

Environment and Sustainability

Both Germany and Italy reflect commitment towards sustainability, with renewable energy consumption at a similar level: 17.6% for Germany and 17.5% for Italy. However, Germany faces a higher level of water stress, utilizing 35.4% of its available freshwater resources, compared to Italy’s 29.6%. In terms of greenhouse gas emissions, Germany emits 8.1 tons of CO2 equivalent per capita, while Italy’s emissions are slightly lower at 6.3 tons. This highlights ongoing challenges in Germany to reduce its carbon footprint despite higher investment in sustainable technologies. Nevertheless, both countries have similar prevalence rates of undernourishment, indicating relatively good food security and agricultural sustainability initiatives.