The aim of this final paper is to present the economy of Italy and clarify the most important branches of the Italian economy. These facts will be shown with the collected information from the used literature. It is important to note that all elements of Italy affect the very economy of each country and Italy as well. Therefore, general facts about Italy and how its geographical location affects its economy will be presented. In addition, the population greatly affects the economy, because some customs in Italy have influenced the development of certain economic branches. Just as the population had an influence, so did politics itself influence the development from the beginning of the Roman Empire until today, and the events throughout the history of Europe and the world influenced the development and direction of the Italian economy. All these factors have influenced what the Italian economy will look like today. Because of all these factors, Italian industry is one of the strongest branches of the Italian economy. In addition to industry, tourism and agriculture are also very important, and they were most influenced by Italy's geographical position. In addition to these branches, mining and energy are very important in the Italian economy.