Gabelli International Growth Fund, Inc. Class AAA (GIGRX) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-08560

GAMCO International Growth Fund, Inc.

(Exact name of registrant as specified in charter)

One Corporate Center
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)

Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)

registrant’s telephone number, including area code: 1-800-422-3554

Date of fiscal year end: December 31

Date of reporting period: December 31, 2010

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

GAMCO International Growth Fund, Inc.

Annual Report
December 31, 2010

Caesar Bryan

To Our Shareholders,

     The Sarbanes-Oxley Act requires a fund’s principal executive and financial officers to certify the entire contents of the semi-annual and annual shareholder reports in a filing with the Securities and Exchange Commission (“SEC”) on Form N-CSR. This certification would cover the portfolio manager’s commentary and subjective opinions if they are attached to or a part of the financial statements. Many of these comments and opinions would be difficult or impossible to certify.

     Because we do not want our portfolio managers to eliminate their opinions and/or restrict their commentary to historical facts, we have separated their commentary from the financial statements and investment portfolio and have sent it to you separately. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com/funds.

     Enclosed are the audited financial statements including the investment portfolio as of December 31, 2010 with a description of factors that affected the performance during the past year.

Performance Discussion (Unaudited)

     The GAMCO International Growth Fund’s (the “Fund”) (Class AAA) net asset value (“NAV”) per share rose 19.2% in 2010, compared with a rise of 12.6% for the Morgan Stanley Capital International (“MSCI”) Europe, Australasia, and Far East (“EAFE”) Index and a gain of 13.2% for the Lipper International Large Cap Growth Fund Average.

     With gross domestic product of around $15 trillion, the U.S. economy continues to dwarf all other single countries. The second and third largest economies are China and Japan, each with GDP of about $5 trillion. The European Union, (“EU”), which presently consists of twenty-seven nations and nearly 500 million people, has a GDP approximately the same size as the U.S. Bear in mind that 9% growth in China contributes $450 billion to incremental global GDP growth, about the same contribution to growth as would be generated by either the U.S. or EU if they grew at a 3.0% rate.

     Equity markets continued their summer rally during the fourth quarter. The U.S. market was one of the stronger major equity markets with the S&P 500 rising by 10.2%. European markets, in aggregate, rose by 4.1%, Emerging Markets by 7.1% and Asia/Pacific markets and Japanese markets rallied by 6.7% and 12.0%, respectively.

     The dollar, as measured by the DXY Index (an index of the dollar relative to six major world currencies) rose by an insignificant 0.4% during the fourth quarter. It appreciated by 1.8% relative to the Euro but declined by 2.8% relative to the Japanese Yen. Commodities were strong during the quarter with copper rising by 21.5% and oil by 10.8%. Most agricultural commodities also rallied during the quarter.

     Selected holdings that contributed positively to performance in 2010 were Compagnie Financiere Richemont (3.7% of net assets as of December 31, 2010), The Swatch Group (3.1%), and Saipem (3.0%), an Italian oil and gas industry contractor. Some of our weaker performing stocks during the year were Roche Holdings AG (2.3%), Petroleo Brasileiro SA (1.3%), and CRH plc (1.0%), a diversified building materials company.

     We appreciate your confidence and trust.

Sincerely yours,

Bruce N. Alpert

President

February 24, 2011

COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE
GAMCO INTERNATIONAL GROWTH FUND CLASS AAA SHARES,
THE LIPPER INTERNATIONAL MULTI-CAP GROWTH FUND AVERAGE,
AND THE MSCI EAFE INDEX (Unaudited)

Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

2

Comparative Results

Average Annual Returns through December 31, 2010 (a) (Unaudited)

																Since
																Inception
	Quarter			1 Year			3 Year			5 Year			10 Year			(6/30/95)
GAMCO International Growth Fund Class AAA		11.73	%		19.16	%		(2.25	)%		4.65	%		3.78	%		7.61	%
MSCI EAFE Index		7.86			12.60			(5.58	)		3.83			3.03			4.06
Lipper International Large Cap Growth Fund Average		7.77			13.22			(5.06	)		4.00			1.85			2.45	(e)
Lipper International Multi-Cap Growth Fund Average		7.77			15.21			(3.92	)		5.44			4.21			7.51
Class A		11.70			19.13			(2.15	)		4.70			3.96			7.73
With sales charge (b)		5.27			12.28			(4.07	)		3.47			3.35			7.32
Class B		11.49			18.17			(3.02	)		3.83			2.99			7.08
With contingent deferred sales charge (c)		6.49			13.17			(4.00	)		3.48			2.99			7.08
Class C		11.50			18.23			(2.99	)		3.85			2.92			7.03
With contingent deferred sales charge (d)		10.50			17.23			(2.99	)		3.85			2.92			7.03
Class I		11.76			19.44			(2.00	)		4.81			3.86			7.67

In the current prospectus, the expense ratios for Class AAA, A, B, C, and I Shares are 2.44%, 2.44%, 3.19%, 3.19%, and 2.19%, respectively. See page 10 for the expense ratios for the year ended December 31, 2010. Class AAA and Class I Shares do not have a sales charge. The maximum sales charge for Class A, B, and C Shares is 5.75%, 5.00%, and 1.00%, respectively.

(a)	Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses. Investment returns and the principal value of an investment will fluctuate. When shares are redeemed, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Performance returns for periods of less than one year are not annualized. Visit www.gabelli.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains information about this and other matters and should be read carefully before investing. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. The Class AAA Shares NAVs per share are used to calculate performance for the periods prior to the issuance of Class A Shares, Class B Shares, Class C Shares, and Class I Shares on July 25, 2001, January 17, 2001, December 17, 2000, and January 11, 2008, respectively. The actual performance of the Class B Shares and Class C Shares would have been lower due to the additional expenses associated with these classes of shares. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index is an unmanaged indicator of international stock market performance, while the Lipper International Large Cap Growth Fund Average and Lipper International Multi-Cap Growth Fund Average reflect the average performance of mutual funds classified in these particular categories. Dividends are considered reinvested. You cannot invest directly in an index.
(b)	Performance results includes the effect of the maximum 5.75% sales charge at the beginning of the period.
(c)	Assuming payment of the maximum contingent deferred sales charge (CDSC). The maximum CDSC for Class B Shares is 5% and is reduced to 0% after six years.
(d)	Assuming payment of the maximum CDSC. A CDSC of 1% is imposed on redemptions made within one year of purchase.
(e)	Lipper international Large Cap Growth Fund Average since inception performance is as of March 31, 1999.

3

GAMCO International Growth Fund, Inc.

Disclosure of Fund Expenses (Unaudited)

For the Six Month Period from July 1, 2010 through December 31, 2010 Expense Table

We believe it is important for you to understand the impact of fees and expenses regarding your investment. All mutual funds have operating expenses. As a shareholder of a fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of a fund. When a fund’s expenses are expressed as a percentage of its average net assets, this figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The Expense Table below illustrates your Fund’s costs in two ways:

Actual Fund Return: This section provides information about actual account values and actual expenses. You may use this section to help you to estimate the actual expenses that you paid over the period after any fee waivers and expense reimbursements. The “Ending Account Value” shown is derived from the Fund’s actual return during the past six months, and the “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund.You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Fund under the heading “Expenses Paid During Period” to estimate the expenses you paid during this period.

Hypothetical 5% Return: This section provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio. It assumes a hypothetical annualized return of 5% before expenses during the period shown. In this case — because the hypothetical return used is not the Fund’s actual return — the results do not apply to your investment and you cannot use the hypothetical account value and expense to estimate the actual ending account balance or expenses you paid for the period. This example is useful in making comparisons of the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads), redemption fees, or exchange fees, if any, which are described in the Prospectus. If these costs were applied to your account, your costs would be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. The “Annualized Expense Ratio” represents the actual expenses for the last six months and may be different from the expense ratio in the Financial Highlights which is for the year ended December 31, 2010.

	Beginning		Ending		Annualized			Expenses
	Account Value		Account Value		Expense			Paid During
	07/01/10		12/31/10		Ratio			Period*
GAMCO International Growth Fund, Inc.
Actual Fund Return
Class AAA	$	1,000.00	$	1,318.80		2.41	%	$	14.09
Class A	$	1,000.00	$	1,318.60		2.41	%	$	14.08
Class B	$	1,000.00	$	1,313.00		3.16	%	$	18.42
Class C	$	1,000.00	$	1,313.50		3.16	%	$	18.43
Class I	$	1,000.00	$	1,319.70		2.16	%	$	12.63
Hypothetical 5% Return
Class AAA	$	1,000.00	$	1,013.06		2.41	%	$	12.23
Class A	$	1,000.00	$	1,013.06		2.41	%	$	12.23
Class B	$	1,000.00	$	1,009.28		3.16	%	$	16.00
Class C	$	1,000.00	$	1,009.28		3.16	%	$	16.00
Class I	$	1,000.00	$	1,014.32		2.16	%	$	10.97

* Expenses are equal to the Fund’s annualized expense ratio for the last six months multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (184 days), then divided by 365.

4

Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of total net assets as of December 31, 2010:

GAMCO International Growth Fund, Inc.

Materials	18.9	%
Consumer Staples	15.7	%
Industrials	13.7	%
Consumer Discretionary	13.7	%
Health Care	12.1	%
Energy	9.4	%
Financials	8.9	%
Information Technology	6.7	%
Telecommunication Services	0.6	%
U.S. Government Obligations	0.7	%
Other Assets and Liabilities (Net)	(0.4	)%
	100.0	%

The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, the last of which was filed for the quarter ended September 30, 2010. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Proxy Voting

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30th, no later than August 31st of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.

5

GAMCO International Growth Fund, Inc.

Schedule of Investments — December 31, 2010

					Market
Shares			Cost		Value
		COMMON STOCKS — 99.7%
		MATERIALS — 18.9%
	4,000	Agnico-Eagle Mines Ltd.	$	247,945	$	306,800
	19,930	Anglo American plc		785,315		1,036,428
	10,000	BHP Billiton Ltd.		421,111		462,816
	15,000	CRH plc		158,053		310,692
	8,000	Impala Platinum Holdings Ltd.		308,638		282,912
	7,000	Newcrest Mining Ltd.		211,005		289,534
	18,825	Rio Tinto plc		669,783		1,316,781
	900	Syngenta AG		267,176		263,262
	40,000	Tokai Carbon Co. Ltd.		185,971		248,799
	61,500	Xstrata plc		563,447		1,443,533
		TOTAL MATERIALS		3,818,444		5,961,557
		CONSUMER STAPLES — 15.7%
	20,728	British American Tobacco plc		558,962		796,124
	10,500	Coca-Cola Hellenic Bottling Co. SA		93,221		271,645
	4,500	Danone		267,020		282,750
	40,000	Diageo plc		356,651		739,008
	5,000	Heineken NV		199,278		245,146
	100	Japan Tobacco Inc.		577,985		370,119
	10,000	Nestlé SA		443,695		585,561
	7,000	Pernod-Ricard SA		221,301		658,159
	50,000	Tesco plc		436,369		331,306
	3,000	Unicharm Corp.		107,803		119,350
	8,000	Wesfarmers Ltd.		240,230		261,836
	10,000	Woolworths Ltd.		139,807		275,849
		TOTAL CONSUMER STAPLES		3,642,322		4,936,853
		INDUSTRIALS — 13.7%
	80,000	China Merchants Holdings (International) Co. Ltd.		273,035		315,974
	12,000	CNH Global NV†		467,453		572,880
	11,000	Experian plc		68,583		136,857
	5,600	FANUC CORP		568,996		860,106
	20,000	Jardine Matheson Holdings Ltd.		494,308		880,000
	10,000	Komatsu Ltd.		211,384		302,623
	110,000	Malaysia Marine and Heavy Engineering Holdings Berhad†		207,838		210,475
	15,000	Mitsui & Co. Ltd.		346,589		247,752
	2,200	Siemens AG		200,946		272,527
	3,000	SMC Corp.		382,180		513,980
		TOTAL INDUSTRIALS		3,221,312		4,313,174
		CONSUMER DISCRETIONARY — 13.7%
	6,000	Accor SA		217,235		266,995
	6,500	Christian Dior SA		392,774		928,534
	20,000	Compagnie Financiere Richemont SA, Cl. A		269,650		1,176,471
	1,200	Fast Retailing Co. Ltd.		185,007		191,107
	75,000	Genting Berhad		254,868		271,931
	8,000	Hennes & Mauritz AB, Cl. B		164,121		266,443
	4,000	Naspers Ltd., Cl. N		156,019		235,567
	12,000	The Swatch Group AG		673,640		967,701
		TOTAL CONSUMER DISCRETIONARY		2,313,314		4,304,749
		HEALTH CARE — 12.1%
	4,500	Bayer AG		189,316		332,540
	4,500	Cochlear Ltd.		221,016		370,094
	5,000	Elekta AB, Cl. B		192,921		192,398
	14,140	GlaxoSmithKline plc		398,654		273,364
	11,000	Novartis AG		433,427		646,471
	5,000	Roche Holding AG, Genusschein		496,178		732,620
	28,000	Smith & Nephew plc		260,382		295,323
	2,000	Synthes Inc.		137,349		270,160
	5,000	Takeda Pharmaceutical Co. Ltd.		213,177		246,028
	7,000	TSUMURA & Co.		212,901		226,666
	3,000	William Demant Holding A/S†		136,249		221,583
		TOTAL HEALTH CARE		2,891,570		3,807,247
		ENERGY — 9.4%
	15,000	BG Group plc		277,152		303,087
	10,000	Galp Energia SGPS SA, Cl. B		267,143		191,627
	11,000	Imperial Oil Ltd.		412,480		448,939
	11,000	Petroleo Brasileiro SA, ADR		137,473		416,240
	19,000	Saipem SpA		379,005		935,363
	5,000	Statoil ASA, ADR		113,650		118,850
	4,000	Technip SA		150,396		369,356
	10,000	Tullow Oil plc		114,988		196,601
		TOTAL ENERGY		1,852,287		2,980,063
		FINANCIALS — 8.9%
	40,000	Cheung Kong (Holdings) Ltd.		466,028		617,023
	20,000	Hang Seng Bank Ltd.		307,351		328,839
	40,000	Hongkong Land Holdings Ltd.		156,910		288,800
	10,000	Kinnevik Investment AB, Cl. B		166,699		203,698
	12,000	Schroders plc		318,907		347,053
	13,500	Standard Chartered plc		281,165		363,178
	40,000	Swire Pacific Ltd., Cl. A		458,982		657,678
		TOTAL FINANCIALS		2,156,042		2,806,269
		INFORMATION TECHNOLOGY — 6.7%
	13,000	Canon Inc.		508,674		674,098
	9,000	Hoya Corp.		244,073		218,598
	2,900	Keyence Corp.		499,647		840,103
	600	Yahoo! Japan Corp.		226,444		232,787
	6,000	Yamatake Corp.		118,852		142,259
		TOTAL INFORMATION TECHNOLOGY		1,597,690		2,107,845

See accompanying notes to financial statements.

6

GAMCO International Growth Fund, Inc.

Schedule of Investments (Continued) — December 31, 2010

					Market
Shares			Cost		Value
		COMMON STOCKS (Continued)
		TELECOMMUNICATION SERVICES — 0.6%
	50,150	Orascom Telecom Holding SAE, GDR† (a)(b)	$	635,031	$	183,048
		TOTAL COMMON STOCKS		22,128,012		31,400,805

Principal
Amount
		U.S. GOVERNMENT OBLIGATIONS — 0.7%
$	205,000	U.S. Treasury Bill, 0.160%††, 03/03/11		204,946		204,962
		TOTAL INVESTMENTS — 100.4%	$	22,332,958		31,605,767
		Other Assets and Liabilities (Net) — (0.4)%				(117,688	)
		NET ASSETS — 100.0%			$	31,488,079

(a) Security purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At December 31, 2010, the market value of the Regulation S security amounted to $183,048 or 0.58% of net assets, which was valued under methods approved by the Board of Directors as follows:

							12/31/10
							Carrying
Acquisition			Acquisition		Acquisition		Value
Shares		Issuer	Date		Cost		Per Unit
	50,150	Orascom Telecom Holding SAE, GDR		10/24/07	$	635,031	$	3.6500

(b)	Illiquid security.
†	Non-income producing security.
††	Represents annualized yield at date of purchase.
ADR	American Depositary Receipt
GDR	Global Depositary Receipt

	% of
	Market			Market
Geographic Diversification	Value			Value
Europe		58.8	%	$	18,591,913
Japan		17.2			5,434,376
Asia/Pacific		16.6			5,230,849
North America		3.9			1,230,862
South Africa		1.6			518,479
Latin America		1.3			416,240
Africa/Middle East		0.6			183,048
		100.0	%	$	31,605,767

See accompanying notes to financial statements.

7

GAMCO International Growth Fund, Inc.

Statement of Assets and Liabilities

December 31, 2010

Assets:
Investments, at value (cost $22,332,958)	$	31,605,767
Receivable for investments sold		353,823
Receivable for Fund shares issued		14,639
Dividends receivable		43,621
Prepaid expenses		32,553
Total Assets		32,050,403
Liabilities:
Payable to custodian		4,070
Payable for investments purchased		400,759
Payable for Fund shares redeemed		34,141
Payable for investment advisory fees		26,268
Payable for distribution fees		6,273
Payable for legal and audit fees		46,579
Other accrued expenses		44,234
Total Liabilities		562,324
Net Assets (applicable to 1,393,969 shares outstanding)	$	31,488,079
Net Assets Consist of:
Paid-in capital	$	22,314,875
Accumulated net investment loss		(102,227	)
Accumulated distributions in excess of net realized gain on investments and foreign currency transactions		(155	)
Net unrealized appreciation on investments		9,272,809
Net unrealized appreciation on foreign currency translations		2,777
Net Assets	$	31,488,079
Shares of Capital Stock each at $0.001 par value:
Class AAA:
Net Asset Value, offering, and redemption price per share ($29,666,335 ÷ 1,313,540 shares outstanding; 375,000,000 shares authorized)	$	22.59
Class A:
Net Asset Value and redemption price per share ($281,696 ÷ 12,285 shares outstanding; 250,000,000 shares authorized)	$	22.93
Maximum offering price per share (NAV ÷ 0.9425, based on maximum sales charge of 5.75% of the offering price)	$	24.33
Class B:
Net Asset Value and offering price per share ($4,535 ÷ 206.6 shares outstanding; 125,000,000 shares authorized)	$	21.95	(a)
Class C:
Net Asset Value and offering price per share ($27,497 ÷ 1,271 shares outstanding; 125,000,000 shares authorized)	$	21.63	(a)
Class I:
Net Asset Value, offering, and redemption price per share ($ 1,508,016 ÷ 66,666 shares outstanding; 125,000,000 shares authorized)	$	22.62

(a) Redemption price varies based on the length of time held.

Statement of Operations

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding taxes of $23,321)	$	580,580
Interest		87
Total Investment Income		580,667
Expenses:
Investment advisory fees		278,792
Distribution fees — Class AAA		65,883
Distribution fees — Class A		568
Distribution fees — Class B		41
Distribution fees — Class C		194
Legal and audit fees		76,846
Custodian fees		55,709
Shareholder communications expenses		50,220
Registration expenses		48,956
Shareholder services fees		20,272
Directors’ fees		13,315
Interest expense		2,146
Miscellaneous expenses		47,676
Total Expenses		660,618
Net Investment Loss		(79,951	)
Net Realized and Unrealized Gain on Investments and Foreign Currency:
Net realized gain on investments		753,496
Net realized gain on foreign currency transactions		2,245
Net realized gain on investments and foreign currency transactions		755,741
Net change in unrealized appreciation:
on investments		4,371,275
on foreign currency translations		1,175
Net change in unrealized appreciation on investments and foreign currency translations		4,372,450
Net Realized and Unrealized Gain on Investments and Foreign Currency		5,128,191
Net Increase in Net Assets Resulting from Operations	$	5,048,240

See accompanying notes to financial statements.

8

GAMCO International Growth Fund, Inc.

Statement of Changes in Net Assets

	Year Ended			Year Ended
	December 31, 2010			December 31, 2009
Operations:
Net investment income/(loss)	$	(79,951	)	$	46,438
Net realized gain/(loss) on investments and foreign currency transactions		755,741			(9,738	)
Net change in unrealized appreciation on investments and foreign currency translations		4,372,450			7,945,748
Net Increase in Net Assets Resulting from Operations		5,048,240			7,982,448
Distributions to Shareholders:
Net investment income
Class AAA		—			(126,842	)
Class A		—			(1,137	)
Class I		—			(7,499	)
		—			(135,478	)
Net realized gain
Class AAA		(666,143	)		—
Class A		(6,262	)		—
Class B		(107	)		—
Class C		(645	)		—
Class I		(33,774	)		—
		(706,931	)		—
Return of capital
Class AAA		—			(13,510	)
Class A		—			(121	)
Class I		—			(799	)
		—			(14,430	)
Total Distributions to Shareholders		(706,931	)		(149,908	)
Capital Share Transactions:
Class AAA		(2,047,636	)		(5,116,876	)
Class A		6,282			25,791
Class B		(2,153	)		(1,877	)
Class C		8,429			(15,198	)
Class I		124,167			(214,314	)
Net Decrease in Net Assets from Capital Share Transactions		(1,910,911	)		(5,322,474	)
Redemption Fees		—			321
Net Increase in Net Assets		2,430,398			2,510,387
Net Assets:
Beginning of period		29,057,681			26,547,294
End of period (including undistributed net investment income of $0 and $0, respectively)	$	31,488,079		$	29,057,681

See accompanying notes to financial statements.

9

GAMCO International Growth Fund, Inc.
Financial Highlights

Selected data for a share of capital stock outstanding throughout each period:

			Income (Loss)																															Ratios to Average Net Assets/
			from Investment Operations									Distributions																						Supplemental Data
						Net																																		Operating
	Net Asset		Net			Realized and			Total						Net												Net Asset					Net Assets		Net						Expense
Period	Value,		Investment			Unrealized			from			Net			Realized												Value,					End of		Investment						Ratio (Net			Portfolio
Ended	Beginning		Income			Gain (Loss) on			Investment			Investment			Gain on			Return of			Total			Redemption			End of		Total			Period		Income			Operating			of Interest			Turnover
December 31	of Period		(Loss)(a)			Investments			Operations			Income			Investments			Capital			Distributions			Fees(a)			Period		Return†			(in 000’s)		(Loss)			Expenses			Expense)			Rate
Class AAA
2010	$	19.39	$	(0.06	)	$	3.78		$	3.72			—		$	(0.52	)		—		$	(0.52	)		—		$	22.59		19.2	%	$	29,666		(0.30	)%		2.38	%		2.37	%		14	%
2009		14.12		0.03			5.34			5.37		$	(0.09	)		—		$	(0.01	)		(0.10	)	$	0.00	(b)		19.39		38.0			27,628		0.17			2.44			2.43			13
2008		26.19		0.30			(11.63	)		(11.33	)		(0.32	)		(0.41	)		(0.01	)		(0.74	)		0.00	(b)		14.12		(43.2	)		25,355		1.41			2.01			2.00			9
2007		24.57		0.33			2.34			2.67			(0.35	)		(0.70	)		—			(1.05	)		0.00	(b)		26.19		10.9			56,678		1.26			1.91			1.87			18
2006		20.63		0.38			3.99			4.37			(0.43	)		—			—			(0.43	)		0.00	(b)		24.57		21.2			64,573		1.70			1.79			1.78			18
Class A
2010	$	19.68	$	(0.06	)	$	3.83		$	3.77			—		$	(0.52	)		—		$	(0.52	)		—		$	22.93		19.1	%	$	282		(0.30	)%		2.38	%		2.37	%		14	%
2009		14.33		0.02			5.43			5.45		$	(0.09	)		—		$	(0.01	)		(0.10	)	$	0.00	(b)		19.68		38.1			241		0.10			2.44			2.43			13
2008		26.45		0.30			(11.70	)		(11.40	)		(0.30	)		(0.41	)		(0.01	)		(0.72	)		0.00	(b)		14.33		(43.0	)		153		1.37			2.01			2.00			9
2007		24.82		0.36			2.33			2.69			(0.36	)		(0.70	)		—			(1.06	)		0.00	(b)		26.45		10.9			473		1.34			1.91			1.87			18
2006		20.84		0.36			4.05			4.41			(0.43	)		—			—			(0.43	)		0.00	(b)		24.82		21.1			334		1.60			1.79			1.78			18
Class B
2010	$	19.01	$	(0.22	)	$	3.68		$	3.46			—		$	(0.52	)		—		$	(0.52	)		—		$	21.95		18.2	%	$	5		(1.13	)%		3.13	%		3.12	%		14	%
2009		13.88		(0.08	)		5.21			5.13			—			—			—			—		$	0.00	(b)		19.01		37.0			6		(0.54	)		3.19			3.18			13
2008		25.70		0.15			(11.38	)		(11.23	)	$	(0.17	)		(0.41	)	$	(0.01	)		(0.59	)		0.00	(b)		13.88		(43.7	)		7		0.73			2.76			2.75			9
2007		24.00		0.13			2.27			2.40			0.00	(b)		(0.70	)		—			(0.70	)		0.00	(b)		25.70		10.0			12		0.51			2.66			2.62			18
2006		20.18		0.20			3.89			4.09			(0.27	)		—			—			(0.27	)		0.00	(b)		24.00		20.2			59		0.91			2.54			2.53			18
Class C
2010	$	18.73	$	(0.21	)	$	3.63		$	3.42			—		$	(0.52	)		—		$	(0.52	)		—		$	21.63		18.2	%	$	27		(1.08	)%		3.13	%		3.12	%		14	%
2009		13.67		(0.08	)		5.14			5.06			—			—			—			—		$	0.00	(b)		18.73		37.0			16		(0.50	)		3.19			3.18			13
2008		25.08		0.05			(11.01	)		(10.96	)	$	(0.03	)		(0.41	)	$	(0.01	)		(0.45	)		0.00	(b)		13.67		(43.7	)		24		0.22			2.76			2.75			9
2007		23.67		0.27			2.10			2.37			(0.26	)		(0.70	)		—			(0.96	)		0.00	(b)		25.08		10.1			109		1.05			2.66			2.62			18
2006		20.00		0.00	(b)		4.06			4.06			(0.39	)		—			—			(0.39	)		0.00	(b)		23.67		20.2			52		(0.01	)		2.54			2.53			18
Class I
2010	$	19.37	$	(0.01	)	$	3.78		$	3.77			—		$	(0.52	)		—		$	(0.52	)		—		$	22.62		19.4	%	$	1,508		(0.07	)%		2.13	%		2.12	%		14	%
2009		14.10		0.07			5.34			5.41		$	(0.13	)		—		$	(0.01	)		(0.14	)	$	0.00	(b)		19.37		38.4			1,167		0.46			2.19			2.18			13
2008(c)		24.96		0.41			(10.47	)		(10.06	)		(0.38	)		(0.41	)		(0.01	)		(0.80	)		0.00	(b)		14.10		(40.2	)		1,008		2.01	(d)		1.76	(d)		1.75	(d)		9

†	Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized.
(a)	Per share amounts have been calculated using the average shares outstanding method.
(b)	Amount represents less than $0.005 per share.
(c)	From the commencement of offering Class I Shares on January 11, 2008 through December 31, 2008.
(d)	Annualized.

See accompanying notes to financial statements.

10

GAMCO International Growth Fund, Inc.
Notes to Financial Statements

1. Organization. GAMCO International Growth Fund, Inc. (the “Fund”) was organized on May 25, 1994 as a Maryland corporation. The Fund is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary objective is long-term capital appreciation. The Fund commenced investment operations on June 30, 1995.

2. Significant Accounting Policies. The Fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Directors (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

The Fund employs a fair value model to adjust prices to reflect events affecting the values of certain portfolio securities that occur between the close of trading on the principal market for such securities (foreign exchanges and over-the-counter markets) at the time at which net asset values of the Fund is determined. If the Fund’s valuation committee believes that a particular event would materially affect net asset value, further adjustment is considered.

11

GAMCO International Growth Fund, Inc.
Notes to Financial Statements (Continued)

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

• Level 1 — quoted prices in active markets for identical securities;

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of investments).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of December 31, 2010 is as follows:

	Valuation Inputs
	Level 1		Level 2 Other Significant		Total Market Value
	Quoted Prices		Observable Inputs		at 12/31/10
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Materials	$	5,961,557		—	$	5,961,557
Consumer Staples		4,936,853		—		4,936,853
Industrials		4,313,174		—		4,313,174
Consumer Discretionary		4,304,749		—		4,304,749
Health Care		3,807,247		—		3,807,247
Energy		2,980,063		—		2,980,063
Financials		2,806,269		—		2,806,269
Information Technology		2,107,845		—		2,107,845
Telecommunication Services		183,048		—		183,048
Total Common Stocks		31,400,805		—		31,400,805
U.S. Government Obligations		—	$	204,962		204,962
TOTAL INVESTMENTS IN SECURITIES — ASSETS	$	31,400,805	$	204,962	$	31,605,767

At December 31, 2009, the market value of Level 2 securities was $26,212,625 or 90.2% of total investments. Foreign common stock was listed in Level 2 securities due to fair value procedures applied resulting from volatility in U.S. markets after the close of the foreign markets. The fair value procedures due to U.S. market volatility was not applied on December 31, 2010, resulting in a transfer of the foreign common stock to Level 1 securities. This transfer amounted to $22,726,791 or 71.9% of total investments.

There were no Level 3 investments held at December 31, 2010 or December 31, 2009.

In January 2010, the Financial Accounting Standards Board (“FASB”) issued amended guidance to improve disclosure about fair value measurements which requires additional disclosures about transfers between Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of fair value measurements using significant unobservable inputs (Level 3). FASB also clarified existing disclosure requirements relating to the levels of disaggregation of fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal

12

GAMCO International Growth Fund, Inc.
Notes to Financial Statements (Continued)

years beginning after December 15, 2009 and interim periods within those fiscal years. Management has adopted the amended guidance and determined that there was no material impact to the Fund’s financial statements except for additional disclosures made in the notes. Disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Management is currently evaluating the impact of the additional disclosure requirements on the Fund’s financial statements.

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purpose hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

The Fund’s derivative contracts held at December 31, 2010, if any, are not accounted for as hedging instruments under GAAP.

Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for the purpose of hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is included in unrealized appreciation/depreciation on investments and foreign currency translations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the Fund’s portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. During the year ended December 31, 2010, the Fund held no investments in forward foreign exchange contracts.

Repurchase Agreements. The Fund may enter into repurchase agreements with primary government securities dealers recognized by the Federal Reserve Board, with member banks of the Federal Reserve System, or with other brokers or dealers that meet credit guidelines established by the Adviser and reviewed by the Board. Under the terms of a typical repurchase agreement, the Fund takes possession of an underlying

13

GAMCO International Growth Fund, Inc.
Notes to Financial Statements (Continued)

debt obligation subject to an obligation of the seller to repurchase, and the Fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. It is the policy of the Fund to receive and maintain securities as collateral whose market value is not less than their repurchase price. The Fund will make payment for such securities only upon physical delivery or upon evidence of book entry transfer of the collateral to the account of the custodian. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to maintain the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. At December 31, 2010, the Fund held no investments in repurchase agreements.

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/loss on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain or loss on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

Determination of Net Asset Value and Calculation of Expenses. Certain administrative expenses are common to, and allocated among, various affiliated funds. Such allocations are made on the basis of each fund’s average net assets or other criteria directly affecting the expenses as determined by the Adviser pursuant to procedures established by the Board.

14

GAMCO International Growth Fund, Inc.
Notes to Financial Statements (Continued)

In calculating the net asset value (“NAV”) per share of each class, investment income, realized and unrealized gains and losses, redemption fees, and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are borne solely by the class incurring the expense.

Custodian Fee Credits and Interest Expense. When cash balances are maintained in the custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any, shown as “Custodian fee credits.” When cash balances are overdrawn, the Fund is charged an overdraft fee equal to 2.00% above the federal funds rate on outstanding balances. This amount, if any, would be included in “interest expense” in the Statement of Operations. There were no custodian fee credits earned during the year ended December 31, 2010.

Distributions to Shareholders. Distributions to shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. Permanent differences were primarily due to the tax treatment of currency gains and losses, a write-off of the current year net operating loss, basis adjustments on the sale of a security no longer deemed a passive foreign investment company, and reclassifications of litigation gain. These reclassifications have no impact on the NAV of the Fund. For the year ended December 31, 2010, reclassifications were made to decrease accumulated net investment loss by $97,921 and to decrease accumulated net realized gain on investments and foreign currency transactions by $8,591, with an offsetting adjustment to additional paid-in capital.

The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:

	Year Ended		Year Ended
	December 31, 2010		December 31, 2009
Distributions paid from:
Ordinary income		—	$	135,478
Net long-term capital gains	$	706,931		—
Return of capital		—		14,430
Total distributions paid	$	706,931	$	149,908

Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

15

GAMCO International Growth Fund, Inc.
Notes to Financial Statements (Continued)

At December 31, 2010, the components of accumulated earnings/losses on a tax basis were as follows:

Net unrealized appreciation on investments	$	9,170,427
Net unrealized appreciation on foreign currency translations		2,777
Total	$	9,173,204

During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $40,219.

At December 31, 2010, the temporary difference between book basis and tax basis net unrealized appreciation on investments was primarily due to deferral of losses from wash sales for tax purposes and mark-to-market adjustments on investments in passive foreign investment companies.

The following summarizes the tax cost of investments and the related net unrealized appreciation at December 31, 2010:

			Gross		Gross
			Unrealized		Unrealized			Net Unrealized
	Cost		Appreciation		Depreciation			Appreciation
Investments	$	22,435,340	$	10,393,001	$	(1,222,574	)	$	9,170,427

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the year ended December 31, 2010, the Fund did not incur any income tax, interest, or penalties. As of December 31, 2010, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. Tax years ended December 31, 2007 through December 31, 2010 remain subject to examination by the Internal Revenue Service and state taxing authorities. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

3. Investment Advisory Agreement and Other Transactions. The Fund has entered into an investment advisory agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed daily and paid monthly, at the annual rate of 1.00% of the value of its average daily net assets. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio, oversees the administration of all aspects of the Fund’s business and affairs, and pays the compensation of all Officers and Directors of the Fund who are affiliated persons of the Adviser.

If total net assets of the Fund are below $100 million, the Fund pays each Director who is not considered to be an affiliated person an annual retainer of $1,000 plus $250 for each Board meeting attended and each Director is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. If total net assets of the Fund are in excess of $100 million, the Fund pays each Independent Director an annual retainer of $3,000 plus $500 for each Board meeting attended and each Director is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended and the Chairman of the Audit Committee and the Lead Director each receive an annual fee of $1,000. A Director may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

16

GAMCO International Growth Fund, Inc.
Notes to Financial Statements (Continued)

4. Distribution Plan. The Fund’s Board has adopted a distribution plan (the “Plan”) for each class of shares, except for Class I Shares, pursuant to Rule 12b-1 under the 1940 Act. Gabelli & Company, Inc. (“Gabelli & Co.”), an affiliate of the Adviser, serves as Distributor of the Fund. Under the Class AAA, Class A, Class B, and Class C Share Plans, payments are authorized to Gabelli & Co. at annual rates of 0.25%, 0.25%, 1.00%, and 1.00%, respectively, of the average daily net assets of those classes, the annual limitations under each Plan. Such payments are accrued daily and paid monthly.

5. Portfolio Securities. Purchases and sales of securities for the year ended December 31, 2010, other than short-term securities and U.S. Government obligations, aggregated $3,772,268 and $6,077,535, respectively.

6. Transactions with Affiliates. During the year ended December 31, 2010, Gabelli & Co. informed the Fund that it retained $70 from investors representing commissions (sales charges and underwriting fees) on sales and redemptions of Fund shares.

7. Line of Credit. The Fund participates in an unsecured line of credit of up to $75,000,000 under which it may borrow up to 10% of its net assets from the custodian for temporary borrowing purposes. Borrowings under this arrangement bear interest at the higher of the sum of the overnight LIBOR plus 125 basis points or the sum of the federal funds rate plus 125 basis points at the time of borrowing. This amount, if any, would be included in “interest expense” in the Statement of Operations. At December 31, 2010, there were no borrowings outstanding under the line of credit.

The average daily amount of borrowings outstanding under the line of credit during the year ended December 31, 2010 was $129,222 with a weighted average interest rate of 1.47%. The maximum amount borrowed at any time during the year ended was $815,000.

8. Capital Stock. The Fund offers five classes of shares — Class AAA Shares, Class A Shares, Class B Shares, Class C Shares, and Class I Shares. Class AAA Shares are offered without a sales charge only to investors who acquire them directly from Gabelli & Co., through selected broker/dealers, or the transfer agent. Class I Shares are offered through Gabelli & Co. and selected broker/dealers to foundations, endowments, institutions, and employee benefit plans without a sales charge. Class A Shares are subject to a maximum front-end sales charge of 5.75%. Class B Shares are subject to a contingent deferred sales charge (“CDSC”) upon redemption within six years of purchase and automatically convert to Class A Shares approximately eight years after the original purchase. The applicable Class B CDSC is equal to a percentage declining from 5% of the lesser of the NAV per share at the date of the original purchase or at the date of redemption, based on the length of time held. Class C Shares are subject to a 1.00% CDSC for one year after purchase. Class B Shares are available only through exchange of Class B Shares of other funds distributed by Gabelli & Co.

The Fund imposes a redemption fee of 2.00% on all classes of shares that are redeemed or exchanged on or before the seventh day after the date of a purchase. The redemption fee is deducted from the proceeds otherwise payable to the redeeming shareholders and is retained by the Fund as an increase in paid-in capital. The Fund did not retain any redemption fees during the year ended December 31, 2010. The redemption fees retained by the Fund during the year ended December 31, 2009 amounted to $321. The redemption fee does not apply to redemptions of shares where (i) the shares were purchased through automatic reinvestment of distributions, (ii) the redemption was initiated by the Fund, (iii) the shares were purchased through programs that collect the redemption fee at the program level and remit them to the Fund, or (iv) the shares were

17

GAMCO International Growth Fund, Inc.
Notes to Financial Statements (Continued)

purchased through programs that the Adviser determines to have appropriate anti-short-term trading policies in place or as to which the Adviser has received assurances that look-through redemption fee procedures or effective anti-short-term trading policies and procedures are in place.

Transactions in shares of capital stock were as follows:

	Year Ended						Year Ended
	December 31, 2010						December 31, 2009
	Shares			Amount			Shares			Amount
Class AAA
Shares sold		111,014		$	2,282,900			112,348		$	1,781,231
Shares issued upon reinvestment of distributions		26,754			606,783			6,653			129,401
Shares redeemed		(248,979	)		(4,937,319	)		(489,863	)		(7,027,508	)
Net decrease		(111,211	)	$	(2,047,636	)		(370,862	)	$	(5,116,876	)
Class A
Shares sold		1,656		$	37,469			2,505		$	42,916
Shares issued upon reinvestment of distributions		175			4,032			37			734
Shares redeemed		(1,798	)		(35,219	)		(984	)		(17,859	)
Net increase		33		$	6,282			1,558		$	25,791
Class B
Shares redeemed		(111	)	$	(2,153	)		(153	)	$	(1,877	)
Net decrease		(111	)	$	(2,153	)		(153	)	$	(1,877	)
Class C
Shares sold		410		$	7,943			118		$	1,972
Shares issued upon reinvestment of distributions		23			504			—			—
Shares redeemed		(1	)		(18	)		(1,060	)		(17,170	)
Net increase/(decrease)		432		$	8,429			(942	)	$	(15,198	)
Class I
Shares sold		9,678		$	188,309			14,400		$	216,896
Shares issued upon reinvestment of distributions		1,486			33,752			427			8,298
Shares redeemed		(4,713	)		(97,894	)		(26,088	)		(439,508	)
Net increase/(decrease)		6,451		$	124,167			(11,261	)	$	(214,314	)

18

GAMCO International Growth Fund, Inc.
Notes to Financial Statements (Continued)

9. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

10. Other Matters. On April 24, 2008, the Adviser entered into a settlement with the SEC to resolve an inquiry regarding prior frequent trading activity in shares of the GAMCO Global Growth Fund (the “Global Growth Fund”) by one investor who was banned from the Global Growth Fund in August 2002. In the administrative settlement order, the SEC found that the Adviser had willfully violated Section 206(2) of the 1940 Act, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had willfully aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, the Adviser, while neither admitting nor denying the SEC’s findings and allegations, paid $16 million (which included a $5 million civil monetary penalty), approximately $12.8 million of which is in the process of being paid to shareholders of the Global Growth Fund in accordance with a plan developed by an independent distribution consultant and approved by the independent directors of the Global Growth Fund and acceptable to the staff of the SEC, and agreed to cease and desist from future violations of the above referenced federal securities laws and rule. The SEC order also noted the cooperation that the Adviser had given the staff of the SEC during its inquiry. The settlement did not have a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement. On the same day, the SEC filed a civil action against the Executive Vice President and Chief Operating Officer of the Adviser, alleging violations of certain federal securities laws arising from the same matter. The officer is also an officer of the Fund, the Global Growth Fund, and other funds in the Gabelli/GAMCO fund complex. The officer denied the allegations and is continuing in his positions with the Adviser and the funds. The court dismissed certain claims and found that the SEC was not entitled to pursue various remedies against the officer while leaving one remedy in the event the SEC were able to prove violations of law. The court subsequently dismissed without prejudice the remaining remedy against the officer, which would allow the SEC to appeal the court’s rulings. On October 29, 2010 the SEC filed its appeal with the U.S. Court of Appeals for the Second Circuit regarding the lower court’s orders. The Adviser currently expects that any resolution of the action against the officer will not have a material adverse impact on the Fund or the Adviser or its ability to fulfill its obligations under the Advisory Agreement.

11. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

19

GAMCO International Growth Fund, Inc.
Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of
GAMCO International Growth Fund, Inc.

We have audited the accompanying statement of assets and liabilities of GAMCO International Growth Fund, Inc. (the “Fund”), including the schedule of investments, as of December 31, 2010, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the Fund’s custodian. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of GAMCO International Growth Fund, Inc. at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania
February 28, 2011

20

GAMCO International Growth Fund, Inc.
Additional Fund Information (Unaudited)

The business and affairs of the Fund are managed under the direction of the Fund’s Board of Directors. Information pertaining to the Directors and officers of the Fund is set forth below. The Fund’s Statement of Additional Information includes additional information about the Fund’s Directors and is available without charge, upon request, by calling 800-GABELLI (800-422-3554) or by writing to the GAMCO International Growth Fund, Inc. at One Corporate Center, Rye, NY 10580-1422.

	Term of	Number of
Name, Position(s)	Office and	Funds in Fund
Address1	Length of	Complex Overseen		Principal Occupation(s)	Other Directorships
and Age	Time Served2	by Director		During Past Five Years	Held by Director4
INTERESTED DIRECTORS3:
Mario J. Gabelli Director Age: 68	Since 1994		26	Chairman and Chief Executive Officer of GAMCO Investors, Inc. and Chief Investment Officer — Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc.; Director/Trustee or Chief Investment Officer of other registered investment companies in the Gabelli/GAMCO Funds complex; Chief Executive Officer of GGCP, Inc.	Director of Morgan Group Holdings, Inc. (holding company); Chairman of the Board and Chief Executive Officer of LICT Corp. (multimedia and communication services company); Director of CIBL, Inc. (broadcasting and wireless communications)
INDEPENDENT DIRECTORS5:
Anthony J. Colavita Director Age: 75	Since 1994		34	President of the law firm of Anthony J. Colavita, P.C.	—
Werner J. Roeder, MD Director Age: 70	Since 1994		22	Medical Director of Lawrence Hospital and practicing private physician	—
Anthonie C. van Ekris Director Age: 76	Since 1994		20	Chairman of BALMAC International, Inc. (commodities and futures trading)	Director of Aurado Energy Inc. (oil and gas operations) through 2005
Salvatore J. Zizza Director Age: 65	Since 2004		28	Chairman and Chief Executive Officer of Zizza & Co., Ltd. (private holding company) and Chief Executive Officer of General Employment Enterprises, Inc.	Director of Harbor BioSciences, Inc. (biotechnology) and Trans-Lux Corporation (business services); Chairman of each of BAM (manufacturing); Metropolitan Paper Recycling (recycling); Bergen Cove Realty Inc. (real estate); Bion Environmental Technologies (technology) (2005-2008); Director of Earl Scheib Inc. (automotive painting) through April 2009

21

GAMCO International Growth Fund, Inc.
Additional Fund Information (Continued) (Unaudited)

	Term of
Name, Position(s)	Office and
Address1	Length of	Principal Occupation(s)
and Age	Time Served2	During Past Five Years
OFFICERS:
Bruce N. Alpert President and Secretary Age: 59	Since 1994	Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988 and an officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex. Director of Teton Advisors, Inc. since 1998; Chairman of Teton Advisors, Inc. 2008 to 2010; President of Teton Advisors, Inc. 1998 through 2008; Senior Vice President of GAMCO Investors, Inc. since 2008
Agnes Mullady Treasurer Age: 52	Since 2006	Senior Vice President of GAMCO Investors, Inc. since 2009; Vice President of Gabelli Funds, LLC since 2007; Officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex
Peter D. Goldstein Chief Compliance Officer Age: 57	Since 2004	Director of Regulatory Affairs at GAMCO Investors, Inc. since 2004; Chief Compliance Officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex

1	Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
2	Each Director will hold office for an indefinite term until the earliest of (i) the next meeting of shareholders, if any, called for the purpose of considering the election or re-election of such Director and until the election and qualification of his or her successor, if any, elected at such meeting, or (ii) the date a Director resigns or retires, or a Director is removed by the Board of Directors or shareholders, in accordance with the Fund’s ByLaws and Articles of Incorporation. Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and qualified.
3	“Interested person” of the Fund as defined in the 1940 Act. Mr. Gabelli is considered an “interested person” because of his affiliation with Gabelli Funds, LLC which acts as the Fund’s investment adviser.
4	This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended, i.e., public companies, or other investment companies registered under the 1940 Act.
5	Directors who are not interested persons are considered “Independent” Directors.

22

GAMCO International Growth Fund, Inc.
Additional Fund Information (Continued) (Unaudited)

2010 TAX NOTICE TO SHAREHOLDERS (Unaudited)

For the year ended December 31, 2010, the Fund paid to shareholders long-term capital gains totaling $706,931. The distributions of long-term capital gains have been designated as a capital gain dividend by the Fund’s Board of Directors.

All designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

23

GAMCO International Growth Fund, Inc.
One Corporate Center
Rye, New York 10580-1422
800-GABELLI
800-422-3554
fax: 914-921-5118
website: www.gabelli.com
e-mail: info@gabelli.com
Net Asset Value per share available daily by calling
800-GABELLI after 7:00 P.M.

Board of Directors
Mario J. Gabelli, CFA		Werner J. Roeder, MD
Chairman and Chief		Medical Director
Executive Officer		Lawrence Hospital
GAMCO Investors, Inc.
Anthony J. Colavita		Anthonie C. van Ekris
President		Chairman
Anthony J. Colavita, P.C.		BALMAC International, Inc.
Salvatore J. Zizza
Chairman
Zizza & Co., Ltd.
Officers and Portfolio Manager
Caesar Bryan		Bruce N. Alpert
Portfolio Manager		President and Secretary
Peter D. Goldstein	��	Agnes Mullady
Chief Compliance Officer		Treasurer

Distributor
Gabelli & Company, Inc.

Custodian, Transfer Agent, and Dividend Agent
State Street Bank and Trust Company

Legal Counsel
Paul, Hastings, Janofsky & Walker LLP

This report is submitted for the general information of the shareholders of GAMCO International Growth Fund, Inc. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

GAMCO

GAMCO International Growth Fund, Inc.

ANNUAL REPORT
DECEMBER 31, 2010

Item 2. Code of Ethics.

(a)	The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.
(c)	There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.
(d)	The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the registrant’s Board of Directors has determined that Salvatore J. Zizza is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Audit Fees

(a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $37,200 for 2009 and $26,000 for 2010.

Audit-Related Fees

(b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2009 and $0 for 2010.

Tax Fees

(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $4,300 for 2009 and $3,100 for 2010. Tax fees represent tax compliance services provided in connection with the review of the Registrant’s tax returns.

All Other Fees

(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2009 and $0 for 2010.

(e)(1)   Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

Pre-Approval Policies and Procedures. The Audit Committee (“Committee”) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissible non-audit services to be provided by the independent registered public accounting firm to the Adviser, Gabelli Funds, LLC, and any affiliate of Gabelli Funds, LLC (“Gabelli”) that provides services to the registrant (a “Covered Services Provider”) if the independent registered public accounting firm’s engagement related directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson must report to the Committee, at its next regularly scheduled meeting after the Chairperson’s pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee’s pre-approval responsibilities to the other persons (other than Gabelli or the registrant’s officers). Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (ii) such services are promptly brought to the attention of the Committee and approved by the Committee or Chairperson prior to the completion of the audit.

(e)(2)  The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) N/A

(c) 0%

(d) N/A

(f) The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.

(g)

The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $4,300 for 2009 and $8,100 for 2010.

(h)

The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)  Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2)  Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(registrant) GAMCO International Growth Fund, Inc.

By (Signature and Title)* /s/ Bruce N. Alpert   Bruce N. Alpert, Principal Executive Officer

Date 3/9/11

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Bruce N. Alpert   Bruce N. Alpert, Principal Executive Officer

Date 3/9/11

By (Signature and Title)* /s/ Agnes Mullady   Agnes Mullady, Principal Financial Officer and Treasurer

Date 3/9/11

 ^* Print the name and title of each signing officer under his or her signature.