Economic developments in LiguriaUpdate

The expansion in economic activity in Liguria continued in the first half of 2007, although at a slightly slower pace than when it began the year before. Apart from short-term fluctuations, production levels in industry remained high thanks to the increase in domestic demand and, in some branches, also in exports. The outlook for the short term is generally positive. The construction industry was buoyed by private residential building work, while the public works sector virtually stagnated. Shipping traffic of high added value goods through regional ports began once more to increase at a rapid pace, although the growth was not as large as in some of the main European competitors. Sales, particularly of non-food products, rose slightly in large retail outlets. Tourist flows were again substantial, as in the previous year. Employment, which has been growing in the region for several years, continued to rise, partly as an effect of measures to legalize foreign workers. There was a further fall in the unemployment rate. Bank lending continued to grow in both the household and corporate sectors. The ratio of adjusted new bad debts to total loans was again modest. There was a small rise in banks’ funding from deposits and repos, while securities held on deposit increased considerably.