During the worst phase of the international crisis, economic activity contracted less sharply in Liguria than in Italy as a whole. The major role of private and public services, the region's low propensity to export, the importance of production for multi-year contracts and the high average age of the population delayed the local economy's reaction to the cyclical downturn. In 2010, however, these same factors made it harder for the region to latch onto the economic recovery, contributing to more hesitant growth than in Italy as a whole. Currently available data suggest that this pattern persisted in the first few months of 2011.
The level of industrial production and orders, still remaining low by historical standards, continued the slow recovery that began in the second half of 2009. Output growth was buoyed by the high-tech sectors and some segments of the machinery industry; by contrast, sectors such as shipbuilding and civil engineering were affected by the completion of several important contracts. One consequence of this was an appreciable deceleration in exports, contrary to the trend at national level. Industrial firms' turnover and capital spending grew slightly in nominal terms.
Activity in the construction sector remained sluggish. Residential building continued to find support in restructuring and renovation work; house prices were stable. Some public works got under way and planning for others advanced. However, the start of major infrastructure projects, only in part financed to date, continues to be restrained by obstacles and uncertainty.
Maritime transport, more dependent on the trend of the international trade than on developments at regional level, benefited from a significant increase in total traffic and particularly in container traffic, which made good the loss recorded in 2009. Freight rates recovered only in part, owing to the persistent abundance of available shipping capacity. Passenger traffic also grew, thanks to cruises.
Retail sales diminished again, reflecting the contraction in households' disposable income. The decline was concentrated in small-scale traditional distribution and in the durable goods segments. In line with developments in the previous two years, the number of overnight stays by visitors in lodging facilities diminished.
The effects of the crisis on the labour market also fed through with a lag with respect to the rest of the Country. The number of occupied persons fell more sharply last year than in 2009, and the increase in job-seekers was more marked. As in 2009, the reduction in employment was most pronounced among young people: the significant contraction in youth employment nearly accounted for all of the diminution in jobs. The unemployment rate increased, rising back above the average for the regions of the North-West. The number of wage supplementation benefit hours authorized grew again as a consequence of the increase in special wage supplementation benefits, which more than offset the reduction in ordinary and extraordinary benefits.
Bank lending to firms returned to growth, particularly in their medium- and long-term component. Contributory factors were the necessity to restructure debtor positions and the need to finance working capital, owing partly to the lengthening of the terms of settlement of trade payment terms. Lending to consumer households continued to grow, mainly driven by the demand for home mortgage loans. Bank lending rates were stable for short-term credit and slightly up for medium- and long-term loans.
The growth in non-performing loans in relation to outstanding loans to firms accelerated, although the ratio remained below the national average; substandard loans increased significantly.
Households and firms' deposits with the banking system diminished. The stock of securities held for custody and administration with banks contracted; both for bank and corporate bonds and for Government securities, this was mainly due to the decline in valuation prices at market value. By contrast, investment funds units and assets in individually managed portfolios increased, benefiting from a recovery in prices.
