According to Svimez, the Association for Industrial Development in Southern Italy, in 2006 economic activity in Basilicata increased faster than in the previous year, benefiting from the recovery of domestic demand, especially consumer expenditure and investment in building. The region’s exports resumed expanding after three years thanks to an upturn in the transport equipment industry.
Industrial output was stationary at the previous year’s level, but in the first quarter of 2007 the rate of increase in orders received by firms accelerated. In the construction industry output was driven by the strong performance of the property market and slight recovery of public works. In the service sector, retail sales began to increase again, while the tourist season closed with a decrease on the previous year. In agriculture, value added diminished after three years of growth.
Employment reflected the improvement in the economic situation, rising by 2.3 per cent. The increase occurred mainly in the service sector and building industry; in the rest of industry and in agriculture the number of persons in work diminished. The unemployment rate fell as migration to the Centre and North of the countries began to pick up.
Bank loans to residents in the region expanded by 8.7 per cent, slightly less than in the previous year. Lending to the corporate sector was driven by higher productivity levels, while the growth in credit to households for home purchases and consumer goods was less rapid but still strong.
The ratio of new bad debts to outstanding loans rose to 4.2 per cent. The deterioration was confined to a few positions pertaining to the service sector. The flow of new non-performing loans of consumer households rose from 0.8 to 1 per cent.
