According to data provided by Svimez, in 2006 GDP growth was 1.8 per cent in Valle d’Aosta, compared with a decline of 0.7 per cent in 2005. The improvement embraced all the main sectors of production.
In industry, the increase in both domestic and foreign demand drove up production and capacity utilization and buoyed investment. Exports grew at a rapid pace, mainly thanks to the contribution of the steel industry.
In construction, private residential building again performed well under the continuing favourable influence of tax incentives for renovation work and the increase in the number of building licences. In the public works sector, production picked up, partly thanks to an increase in investment by the regional authorities.
In the service sector, there was a growth in turnover of retail companies and of large transport firms, which substantially increased their investment spending for new ski lifts. Tourism flows increased, more significantly in the foreign component.
The improved economic situation had a positive effect on labour market indicators. In 2006 the total number of persons in work increased as a result of the growth in the service sector; in industry excluding construction the beneficial effect on employment was only felt in the second half of the year. In the construction sector there were signs of a slowdown, with a slight drop in the number of persons in work and an increase in recourse to special Wage Supplementation Fund benefits. The unemployment rate fell to 3 per cent, one of the lowest figures in the country.
Bank lending to residents in Valle d’Aosta grew only slightly faster than in the previous year. Loans to consumer households continued to rise at a rapid pace, both for home purchases and in the form of consumer credit.
With the improvement in the economic situation, lending to manufacturing, construction and service firms accelerated with respect to the previous year and amounts drawn on current account overdraft facilities increased overall, partly to meet larger working capital requirements.
The quality of credit improved on the whole, particularly in industry and among consumer households, although remaining unchanged, and fairly poor, in construction and services.
Households in the region gave their preference to fairly low-risk and low-yield financial instruments, increasing their bank deposits and holdings of Italian government securities. Use of asset management services increased and to a small extent also investments in bonds. Investments in shares and collective investment undertakings diminished.
