[ARTICLE] 6
[CIK] 0000785855
[NAME] THE ITALY FUND INC.
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   6-MOS
[FISCAL-YEAR-END]                          JAN-31-1999
[PERIOD-END]                               JUL-31-1998
[INVESTMENTS-AT-COST]                       90,779,310
[INVESTMENTS-AT-VALUE]                     165,495,821
[RECEIVABLES]                                  593,140
[ASSETS-OTHER]                                       0
[OTHER-ITEMS-ASSETS]                        29,557,914
[TOTAL-ASSETS]                             195,646,875
[PAYABLE-FOR-SECURITIES]                     1,124,041
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                   23,362,648
[TOTAL-LIABILITIES]                         24,486,689
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                    94,921,410
[SHARES-COMMON-STOCK]                        9,503,089
[SHARES-COMMON-PRIOR]                        9,503,089
[ACCUMULATED-NII-CURRENT]                    1,595,022
[OVERDISTRIBUTION-NII]                               0
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                        43,481
[ACCUM-APPREC-OR-DEPREC]                    74,687,235
[NET-ASSETS]                               171,160,186
[DIVIDEND-INCOME]                            2,598,098
[INTEREST-INCOME]                              206,315
[OTHER-INCOME]                                       0
[EXPENSES-NET]                                 982,854
[NET-INVESTMENT-INCOME]                      1,821,559
[REALIZED-GAINS-CURRENT]                     6,256,344
[APPREC-INCREASE-CURRENT]                   25,370,589
[NET-CHANGE-FROM-OPS]                       33,448,492
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                            0
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                              0
[NUMBER-OF-SHARES-REDEEMED]                          0
[SHARES-REINVESTED]                                  0
[NET-CHANGE-IN-ASSETS]                      33,448,492
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                        310,826
[OVERDIST-NET-GAINS-PRIOR]                   6,215,536
[GROSS-ADVISORY-FEES]                          772,157
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                                982,854
[AVERAGE-NET-ASSETS]                       164,091,385
[PER-SHARE-NAV-BEGIN]                            14.49
[PER-SHARE-NII]                                  00.19
[PER-SHARE-GAIN-APPREC]                          03.33
[PER-SHARE-DIVIDEND]                                 0
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                              18.01
[EXPENSE-RATIO]                                  01.20
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>