Bank of Italy: slow economic growth in Calabria in 2023

John

By John

«In 2023 the Calabrian economy has slowed down, after the two years of sustained recovery that followed the pandemic crisis. Based on the Bank of Italy's Iter indicator, economic activity in Calabria would have grown in the year by 0.6% (3.2% in 2022), a figure similar to the South and lower than the Italian average”. This was revealed by the Catanzaro branch of the Bank of Italy in its annual report on the economy of Calabria.

«The macroeconomic framework – we read in the Bank of Italy report – has been particularly affected by the loss of purchasing power of families and the tightening of credit access conditions. All in all the consumption trend was less favorable than that of investments. Looking ahead, the economic situation could benefit from the strong slowdown in inflation recorded at the end of 2023 in the region, as well as in the rest of the country, especially in relation to the drop in the price of energy goods. However, possible downward risks for growth could derive – continues the regional Bank of Italy – from the further worsening of geopolitical tensions, which weigh on uncertainty and the climate of confidence of economic operators”.

Furthermore, according to the Bank of Italy, in Calabria «in 2023 the growth in turnover at constant prices of companies slowed down, contributed by modest dynamics of the tertiary sector. The trend remained better in construction, while production fell in industry in the strict sense and in the agricultural sector, discounting the effects of the adverse climatic phenomena recorded during the year”.

Furthermore – continues the report of the regional Bank of Italy – in Calabria employment “And also increased in 2023, both in the self-employed and employed components, still fueled by a wide use of permanent contracts. The nominal income of Calabrian families benefited from improvements in employment levels but the increase recorded in 2023 was more than offset by inflation, which slowed down the recovery in consumption underway after the pandemic.”