Italy was Canada’s 6th largest merchandise export market in the EU in 2016 with Canadian export flows reaching CAD 2.3 bn. In the medium term, Canadian exports to Italy should get a boost with the coming into force of the Comprehensive Economic Trade Agreement (CETA). While trade and investment ties are strong, growth in the Italian economy continues to be held back by a lack of need strucutral reforms; real GDP growth for Italy for 2018 is projected to reach only 1%. Like many other European countries, Italy’s political landscape is rapidly changing, a process best demonstrated by recent victories by the Five Star Movement at the mayoral level in both Rome and Turin in 2016. The loss of a referendum on Senate reform and the subsequent resignation of outgoing President, Matteo Renzi, have also served to increase political uncertainty. In addition to these politcal factors, weakness in the banking sector and the need to recapitalize some financial institutions has created economic headwinds. From a sectorial perspective, EDC has historically seen most activity in a diversified range of sectors including Aerospace (Engines and Components) and Mining & Metals (Processing Equipment). In addition to these industries, EDC sees strong opportunities in the ICT and Infrastructure sectors.
- Automotive & Heavy Truck
- Construction & Infrastructure
- Oil and Gas
- Renewable Energy