The financial power of Italy

[ValerioAurelius]

Some like to brag here about their oh so "mighty" countries and i was amazed today to realize how weak some who think they are sooo powerful are...

The richest city in Italy is Milano. Which is also the world capital of fashion.

The GDP of the city of Milano in 2016 was €532 billion which is equivalent to US $633 billion.

https://en.wikipedia.org/wiki/Economy_of_Milan

Now lets compare the italian city Milano with nations like Iran...

The entire nation of Iran in 2016 had a GDP of 393,4 billion $. Which means the city of Milano has an economy 1.6 times bigger than entire Iran.

Turkey fares a bit better with an GDP of 857.7 billion $. But in perspective the city of Milano reaches 74% of the economy of entire Turkey.

Now can someone explain to me how a country like Iran with 80 million people...can have a weaker economy than a single city with 1.3 million inhabitants?

@raptor22 @damm1t @Hack-Hook @mohsen @Kaptaan @waz @Vergennes

 

[Vergennes]

It's not a surprise,Milan is actually the industrial and financial heart of Italy.

 

[Śakra]

The entire nation of Iran in 2016 had a GDP of 393,4 billion $. Which means the city of Milano has an economy 1.6 times bigger than entire Iran.

iran is the poorest major-oil producing country buy a LONG-SHOT. Their per capita income is closer to African countries than it is to GCC states.

 

[AUz]

Are we really arguing that a punny weakling state like Italy is more powerful and influential than Iran?


This gdp argument is as dumb as it gets. Let’s company Switzerland and Russia. Russia is shitty compared to Switzerland in terms of per capita income, GDP per capita, life standards and what have you. Tiny Netherlands has bigger gdp than many of major Russian regions.

Does that mean Netherlands and Switzerland are more powerful and relevant than Russia?

In international relations, only thing that matters is power and influence. Not GDP and life standards. Bigger GDP helps you build power and influence...but it’s no way near the sole factor when deciding a nations’ power.

By all accounts, Iran today is more influential and powerful than minnows like Italy. That’s just a fact..

 

[MastanKhan]

Some like to brag here about their oh so "mighty" countries and i was amazed today to realize how weak some who think they are sooo powerful are...

The richest city in Italy is Milano. Which is also the world capital of fashion.

The GDP of the city of Milano in 2016 was €532 billion which is equivalent to US $633 billion.

https://en.wikipedia.org/wiki/Economy_of_Milan

Now lets compare the italian city Milano with nations like Iran...

The entire nation of Iran in 2016 had a GDP of 393,4 billion $. Which means the city of Milano has an economy 1.6 times bigger than entire Iran.

Turkey fares a bit better with an GDP of 857.7 billion $. But in perspective the city of Milano reaches 74% of the economy of entire Turkey.

Now can someone explain to me how a country like Iran with 80 million people...can have a weaker economy than a single city with 1.3 million inhabitants?

@raptor22 @damm1t @Hack-Hook @mohsen @Kaptaan @waz @Vergennes

Hi,

It is because of sanctions---otherwise Iran would have been way up there---.

 

[Indus Pakistan]

Now can someone explain to me how a country like Iran with 80 million people...can have a weaker economy than a single city with 1.3 million inhabitants?

Well I will do my best. Yes, your right there. These figures do look bizzare. As some members said Iran is under sanctions but it's more than that.

When we calculate the GDP lot of it is assumptive valuation done on things like services etc. So for example a cardiac operation in Milan might cost you $10,000 dollars. A hair cut $100. But in Tehran the same might cost you $2,000 and $20. Does this mean the cardiac operation and the haircut in Milan is five times better? Of course not. I saw a news report of a motorway being opened in Pakistan. The 30 mile stretch cost $300 million all told. In UK $300 million would not even get you 3 mile track. But the product is same. Therefore these figures have to be used with some common sense.

On paper Milan could fight Iran and defeat it. But that is nonsense. The reality is Iran could field a million man army with £10 billion. What we have to keep in mind is how far a unit of money gets you. Not the absolute figure.

 

[ValerioAurelius]

Hi,

It is because of sanctions---otherwise Iran would have been way up there---.

And that Turkey has only 26% higher GDP than Milano is also because sanctions?

 

[Indus Pakistan]

And that Turkey has only 26% higher GDP than Milano is also because sanctions?

I am sure you have heard of the concept of "developing countries"???

 

[ValerioAurelius]

I am sure you have heard of the concept of "developing countries"???

I have, it was an iranian user here who claimed Iran is all mighty and would order air strikes on european cities

 

[Englishman]

UK GDP per capita $40,000
Italy GDP per capita $30,000

UK 25% better off than Italy. Or as Trump would say shithole country

How do we quantify that? What does that 25% mean?....

But I get your pint. Your danger is misplaced sense superiority. Everyone has a story to tell worth listening to....

 

[Indus Pakistan]

I have, it was an iranian user here who claimed Iran is all mighty and would order air strikes on european cities

Iran is great country. It's history is probably more illustrious then most if not all countries. Who has not heard of Cyrus, Darius etc. The ruins of Persepolis alluded to a empire that once stood from Thrace in Europe to Indus in South Asia.

However they have gotten the mullah curse. That means the entire country gifted with bright people, with high literacy and scientific pool is held hostage to mullah politics. The Yanks have Iran more sanctioned then a serial murderer in Sweden. The result is the countries economy is in state of arrest and undevalued.

Going back to GDP we must keep in mind lot of enumeration is based on demand or assumptive valuation. My sister in law came to visit me. Our house is worth about £300k in North of England. She is from London. She told me the same house would cost £3 million in London. But it would be same house, my 'enjoyment' of it would be same, my utility of it would be same. But in London it would cost £3 million.

Therefore the valuation of anything is not entirely some fixed intrinsic value but has to do with geo-politics and international trading order.

 

[war&peace]

Well I will do my best. Yes, your right there. These figures do look bizzare. As some members said Iran is under sanctions but it's more than that.

When we calculate the GDP lot of it is assumptive valuation done on things like services etc. So for example a cardiac operation in Milan might cost you $10,000 dollars. A hair cut $100. But in Tehran the same might cost you $2,000 and $20. Does this mean the cardiac operation and the haircut in Milan is five times better? Of course not. I saw a news report of a motorway being opened in Pakistan. The 30 mile stretch cost $300 million all told. In UK $300 million would not even get you 3 mile track. But the product is same. Therefore these figures have to be used with some common sense.

On paper Milan could fight Iran and defeat it. But that is nonsense. The reality is Iran could field a million man army with £10 billion. What we have to keep in mind is how far a unit of money gets you. Not the absolute figure.

Purchasing power parity is a better measure for comparison than the naked GDP but even PPP is not the most accurate measure.

Let's compare a middle class or upper middle class home in Pakistan, spread over 4 kanals in an expensive sector of Islamabad with shining marble flours, carpeted corridors and stairs, a large swimming pool. With maids and chefs to service the home and its tenants and drivers to drive you around... Can a middle class or an upper middle class business man in London afford all that in a decent area like Kensington?

 

[Englishman]

Iran is great country. It's history is probably more illustrious then most if not all countries. Who has not heard of Cyrus, Darius etc. The ruins of Persepolis alluded to a empire that once stood from Thrace in Europe to Indus in South Asia.

However they have gotten the mullah curse. That means the entire country gifted with bright people, with high literacy and scientific pool is held hostage to mullah politics. The Yanks have Iran more sanctioned then a serial murderer in Sweden. The result is the countries economy is in state of arrest and undevalued.

Going back to GDP we must keep in mind lot of enumeration is based on demand or assumptive valuation. My sister in law came to visit me. Our house is worth about £300k in North of England. She is from London. She told me the same house would cost £3 million in London. But it would be same house, my 'enjoyment' of it would be same, my utility of it would be same. But in London it would cost £3 million.

Therefore the valuation of anything is not entirely some fixed intrinsic value but has to do with geo-politics and international trading order.

300k?

Big house for up North....

 

[Indus Pakistan]

Purchasing power parity is a better measure for comparison and naked GDP but even PPP is not the most accurate measure.
Let's compare a middle class or upper middle class home in Pakistan, spread over 4 kanals in an expensive sector of Islamabad with shining marble flours, carpeted corridors and stairs, a large swimming pool. With maids and chefs to service the home and its tenants and drivers to drive you around... Can a middle class or an upper middle class business man in London can afford all that in a decent area like Kensington?

The short answer is "no". It would take a millionaire to afford that sort of living standard in London.

300k?

Big house for up North....

Well biggish [4 beds detached with large gardns] and in nice area on the edge of the city with view of the countryside. It's not all paupers up "norf" you know.

 

[jamal18]

Marcus, I guess there's not much happening in Italy nowadays, so you spend your time antagonizing people...?