In 2009 the impact of the global economic crisis was less severe in Valle d'Aosta than in Italy as a whole, thanks in part to the importance of the less heavily affected service sector in the region's economy.
Industry was the sector hit hardest by the international recession. Domestic orders and exports dropped sharply, industrial production fell and the capacity utilization rate decreased. The decline in the region's exports exceeded the national average, largely because of the contraction in those of metal products, the region's leading export item. The ample margins of spare capacity were reflected in investment, which fell to a ten-year low.
In the construction sector, business surveys found a weakening of activity in 2009. The property market recorded a decrease in the number of transactions and a slowdown in selling prices.
In services, the reduction in households' disposable income affected consumer spending; in particular, spending on durable goods fell. In the tourism sector, an increase in the number of arrivals at the region's lodging facilities was accompanied by a decline in the number of overnight stays, due to the drop in those by tourists from abroad.
The contraction in economic activity affected employment, which fell significantly in industry and distribution. Despite massive recourse to wage supplementation the number of persons in employment fell by 0.9 per cent, less than the average decline in the North West and in Italy as a whole.
The most recent survey data, regarding orders, exports and wage supplementation, point to a moderate improvement in activity in the course of 2010. However, there is considerable uncertainty among firms about the strength and timing of the economic recovery. Positive indications also come from the construction sector, with an increase in demand tied to public works.
Bank lending to borrowers resident in Valle D'Aosta fell in 2009. Loans to firms contracted, while lending to consumer households continued to grow, albeit at a slower pace than in 2008. The growth in lending to households came from that in loans for house purchases; consumer credit granted by banks stagnated. In March 2010 overall bank lending returned to growth, with a slight acceleration in lending to households and an upturn in loans to the productive sector.
Loan quality was affected by the recession. New bad debts and substandard loans grew in relation to the stock of outstanding loans for both firms and households.
Savers in the region continued to prefer relatively low-risk financial instruments; their holdings of bank deposits and bank bond continued to grow. Bank bonds, units of collective investment undertakings and individually managed portfolios grew as a proportion of the total securities deposited by households with banks, while government securities and corporate bonds declined. The proportion of equities continued to be marginal.
