Economic activity expanded more slowly in Basilicata in 2007 than in 2006. According to Svimez estimates, regional GDP grew by 1.5 per cent in real terms, compared with 1.7 per cent in 2006, reflecting the progressive slowdown in domestic demand, most notably in consumption, due in part to increasing uncertainty about the evolution of cyclical conditions. The contribution of foreign demand increased: regional exports grew again, led by transport equipment and the products of extractive industries.
Industrial production recorded a further modest gain but slowed from the summer onwards. Activity in the construction industry held at the previous year's level, though with signs of a pick-up in the public works sector. In services, after recovering in 2006, retail sales diminished slightly last year. The tourist industry recouped the ground lost the previous year. Value added in agriculture returned to growth.
Non-farm employment decreased slightly, reflecting the fall in the construction industry. Employment increased both in industry excluding construction and in services. The unemployment rate continued to decline, again as a consequence of discouragement among job-seekers, a phenomenon due in part to the labour market's difficulty in absorbing more highly educated workers.
The growth in bank lending to customers resident in Basilicata eased somewhat. Lending to firms slowed, reflecting weaker demand for short-term loans; households' demand for loans for the purchase of houses and consumer goods remained robust but was moderated by the high level of interest rates.
After rising sharply in 2006, the ratio of new bad debts to the stock of loans outstanding at the beginning of the year declined; the indicator of risk was highest for loans to firms, while it remained modest for loans to consumer households.
