Economic history of pre-unitarian Italy

The economic history of pre-unitarian Italy traces the economic and social changes of the Italian territory from Roman times to the unification of Italy (1860).

In Roman times, the Italian peninsula had a higher population density and economic prosperity than the rest of Europe and the Mediterranean basin, especially during the 1st and 2nd centuries. Beginning in the 3rd century CE, the Roman Empire began to decline, and so did the Italian territory and its cities.

During the early Middle Ages (7th-9th centuries), the economy was in a depressed, semi-subsistence state, gravitating around feudal centers. Beginning in the 10th century, the Italian population and economy began to grow again, along with urban centers. Extensive trade networks developed over time, linking Italian centers to a network of relations from Asia to northern Europe. These centers of manufacturing, financial, mercantile and cultural activities made the Italian economy more prosperous than other European countries.

The arrival of the Black Death in the mid-1300s decimated the population, but it was soon followed by an economic revival. This growth produced a prosperous Renaissance economy that was advanced compared to European countries. Italy's leading sectors were textiles (woollen and silk workmanship, widely exported), banking services, and maritime transport.

During the 1600s, the economic system weakened and enterprises linked to the major urban centers declined. Holland, England and France assumed a prominent economic role in Europe, and Italy lost its dominant position in textile exports, financial intermediation and shipping. Stagnation initiated a shattering of economic relations in the Italian area.

Between the eighteenth and mid-nineteenth centuries, Italy remained divided into small states, many of them under foreign domination: this context did not favor the economic and commercial growth and competitiveness of the Italian area. However, some Italian states initiated major economic reforms that would have long-term implications. Clear socio-economic differences between the north and south began to emerge.