The Trade Performance Index (TPI) developed for 2021 by the International Trade Centre (ITC) emerges as a crucial tool for assessing a country’s position in the context of international trade. This index, measuring the competitiveness of 189 countries across 14 macrosectors of global trade, is based on five sub-indicators for each sector, providing a thorough analysis of trade dynamics.
The five sub-indicators for each of the 14 macrosectors are:
- Sectoral trade balance of each country.
- Per capita sectoral exports.
- Country’s share in global exports for each sector.
- Level of diversification for each country in terms of the number of products exported.
- Level of market diversification for each country in each sector.
Italy stands out significantly on the international stage, securing various top positions in the 2021 ranking:
- First place in competitiveness in clothing and leather goods, leading the sector globally.
- Second place in textiles and, notably, in non-electronic machinery, surpassed only by Germany.
- Third place in basic manufacturing, electrical and electronic products, and other manufacturing.
- Fourth place in processed food and transportation.
- Fifth place in wood and paper.
- Eighth place in chemicals and pharmaceuticals.
Another relevant aspect is the diversification of exports in terms of products, highlighted by the Competitive Excellence Index (IEC) from the Edison Foundation for 2021. The analysis of individual products, totaling 5,388, reveals that Italy is among the top five countries globally for a positive trade balance, amounting to $104 billion, across 1,526 products.
The significant diversification of Italian exports is further confirmed by another index: the Concentration Ratio (CR). It is evident that the top 50 products exported by Italy account for only 29.7% of the total export, placing Italy at the top of the G-20. This is consistent with historical data from UNCTAD, showing Italy consistently having the lowest concentration of exported products since the late 1990s.
This underscores remarkable diversification and strength in Italian exports, contributing to its success in the global market.
