Economic developments in Campania in the year 2005Update

Economic activity expanded in Campania in the first half of 2006, interrupting the downtrend of the previous two years. After seeing its value added decline for two years, industry began to grow again, thanks in part to the acceleration of foreign demand. Signs of recovery emerged in tourist and transport services, while relatively less favourable performances characterized the construction sector and business services. Both the household consumption and investment components of domestic demand continue to display weakness. In the first half of the year employment trends differed from sector to sector; the overall number of persons in work remained stationary, after falling in 2004 and 2005. In the credit market, the growth rate of bank lending remained high and above the national average; contributory factors were, on one side, the demand for liquidity in connection with the financing of working capital and, on the other, expansionary lending policies, favoured by a historical low rate of non-performing loans.