Same for Italy. I always thought, like Greece and Poland, it's where EU manufacturers get cheap labor. On the flip side, I thought made in Japan would be top 3. People always look for the label on Japanese line products (zojirushi, fujifilm, etc)
Made in Italy still carries a lot of weight when it comes to cloths, leather goods and other fashion accessories. I guess that explains the positive score. They're also considered a producer and exporter of high quality food.
Labor in Italy isn't cheap at all, because of high pension contributions and labor taxation. Most "cheap" labor intensive productions moved abroad during the last 20 years, what's left is mostly high-quality high-price products, or highly automated ones.