Economic developments in PugliaUpdate

Following strong growth in 2006, the regional economy showed signs of slowing in 2007. Structural problems in the traditional sectors of fashion and furniture contrasted with a stronger performance on the part of the engineering industry. Exports were virtually unchanged in value terms, pointing to a probable reduction in volumes. Output in the construction industry stagnated, partly owing to the weakness of the public works sector. Employment continued to increase, and in the two years 2006-07 recouped the contraction recorded between 2002 and 2005. The rise in both the number of persons in work and the economically inactive population led to a sharp decline in the rate of unemployment. Bank lending continued to expand rapidly. Medium and long-term loans, both fixed rate and reviewable after a year, increased. The growth in bank deposits slowed, while that in securities on deposit and managed assets accelerated, driven by the sharp rise in short-term government securities and non-bank bonds.