The economy of Italy is a highly developed social market economy. It is the third-largest national economy in the European Union, the 8th-largest economy in the world by nominal GDP, and the 11th-largest by PPP-adjusted GDP. The country has the second-largest manufacturing industry in Europe, which is also the 7th-largest in the world. Italy has a diversified economy which is dominated by the tertiary service sector. The country is a great power, and is a founding member of the European Union, the eurozone, the Schengen Area, the OECD, the G7 and the G20; it is the eighth-largest exporter in the world, with $611 billion exported in 2021. Its closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total trade. Its largest trading partners are Germany (12.5%) and France (10.3%), followed by the United States (9%), Spain (5.2%), the United Kingdom (5.2%) and Switzerland (4.6%).
