The economy of Campania resumed growth in 2006, marking the end of the recession under way since 2003. GDP is estimated to have expanded at constant prices by 1.3 per cent according to SVIMEZ, Association for Industrial Development in Southern Italy, and by 1.6 per cent according to the Chambers of Commerce and Prometeia.
The recovery affected the components of demand to different degrees. Household consumption, which had been virtually stationary for two years, recorded a small increase. Investment, which had begun to pick up in 2005, continued to expand, while exports rose at constant prices for the first time in four years.
Output accelerated in almost all sectors of the economy. The climate of confidence among firms remained fairly strong in the early months of 2007. Agricultural production increased in value. Between 2000 and 2005 the economic size of farms grew, making them more willing to engage in multi-function activities. This led to a sharp improvement in productivity, although not enough to close the gap with the rest of the country.
The recovery in industry was especially significant. Driven by the sharp upturn in exports, value added increased after four consecutive years of decline. Between 2001 and 2005, the performance of value added and exports had deteriorated considerably compared with the other regions of Southern Italy, as well as with the backward regions of Spain and Germany, the two other European countries with similar geographical disparities to Italy. In particular, exports from the region had fallen by more than 2 percentage points to 8.4 per cent of GDP.
The recovery in industrial investment recorded in 2005 during the survey of a sample of firms based in Campania gained strength during 2006. Between 2000 and 2004 fixed investment in industry in the region had declined by an average of 1.3 per cent a year, despite public subsidies. Disbursements to support investment amounted to around € 900 million a year during the period, equal to more than a quarter of the value of the investments made.
In recent years the majority of industrial enterprises in Campania have kept their main business strategies unchanged. Only a very small proportion of firms have altered the type of goods produced, invested in their trademark or opted for internationalization. There is no shortage of firms capable of competing successfully on the international markets. However, they are few in number considering the region's economic and demographic size. Foreign direct investment has provided only a minor contribution to enlarging the production base.
In 2006 the construction industry put in a strong performance, mainly thanks to progress on public works. A contribution again came from investments
