The pace of activity slowed in Calabria in 2007 in all sectors of the economy except construction.
In agriculture, harvest volumes declined for all of the region's main crops; the harvest of olives, Calabria's most important crop, fell for the third consecutive year.
In the manufacturing sector, production and orders began to worsen again in the second half of the year. Investment fell, contracting more sharply among small firms. The contribution of exports, though marginal, was positive.
Construction activity continued to expand in the public works sector, while the property market showed signs of slowing.
Retail sales declined in value, reflecting lower sales by small and medium-sized units. Tourist flows grew for the second consecutive year but remained geographically undiversified and concentrated in the summer months. In the transport sector, passenger traffic through Lamezia Terme airport continued to grow, albeit less swiftly; the two-year decline in transshipment activity at the port of Gioia Tauro came to an end, thanks in part to infrastructural upgrading that is still proceeding.
The fall in the unemployment rate, under way since 2000, occurred in concomitance with the decline in employment levels in almost every sector of the economy and with a decrease in labour market participation among both men and women.
Bank lending decelerated but still grew at an appreciable rate, in line with the trend at national level. Lending to medium-sized and large companies continued to grow rapidly, while lending to firms with fewer than 20 workers slowed sharply. The main contribution to the increase in lending to consumer households, which again expanded at a sustained pace, came from home mortgage loans. Consumer households' financial debt rose further in relation to GDP. Consumer credit provided by banks and other financial institutions grew at half the rate recorded in 2006.
The riskiness of banks' loan portfolios, measured by the ratio of non-performing loans to the stock of outstanding loans declined significantly during the year, narrowing the gap with respect to the national figure.
Bank funding increased, thanks mainly to funds raised from consumer households; bond issues and repos increased, while the contribution of current accounts was marginal.
