[ARTICLE] 6
[CIK] 0000785855
[NAME] THE ITALY FUND INC.
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   YEAR
[FISCAL-YEAR-END]                          JAN-31-1998
[PERIOD-END]                               JAN-31-1998
[INVESTMENTS-AT-COST]                       87,818,598
[INVESTMENTS-AT-VALUE]                     137,237,499
[RECEIVABLES]                                  132,630
[ASSETS-OTHER]                                 600,400
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                             137,970,529
[PAYABLE-FOR-SECURITIES]                             0
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                      258,835
[TOTAL-LIABILITIES]                            258,835
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                        95,031
[SHARES-COMMON-STOCK]                        9,503,089
[SHARES-COMMON-PRIOR]                        9,503,089
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                         905,270
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                     5,807,136
[ACCUM-APPREC-OR-DEPREC]                    49,392,380
[NET-ASSETS]                               137,711,694
[DIVIDEND-INCOME]                            1,998,219
[INTEREST-INCOME]                              152,299
[OTHER-INCOME]                                       0
[EXPENSES-NET]                               1,456,749
[NET-INVESTMENT-INCOME]                        693,769
[REALIZED-GAINS-CURRENT]                       662,074
[APPREC-INCREASE-CURRENT]                   23,113,183
[NET-CHANGE-FROM-OPS]                       24,469,020
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                      190,062
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                              0
[NUMBER-OF-SHARES-REDEEMED]                          0
[SHARES-REINVESTED]                                  0
[NET-CHANGE-IN-ASSETS]                      24,469,026
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                        917,714
[OVERDIST-NET-GAINS-PRIOR]                   6,960,473
[GROSS-ADVISORY-FEES]                        1,072,169
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                              1,456,749
[AVERAGE-NET-ASSETS]                                 0
[PER-SHARE-NAV-BEGIN]                            11.94
[PER-SHARE-NII]                                  00.07
[PER-SHARE-GAIN-APPREC]                          02.50
[PER-SHARE-DIVIDEND]                             00.02
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                              14.49
[EXPENSE-RATIO]                                  01.29
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>