Lazio's GDP grew by 1.5 per cent in real terms in 2007 according to Unioncamere-Prometeia estimates. Growth was more vigorous in the first half of the year; subsequently, its pace diminished, owing to the weakening of economic activity at international level and to the gradual slowing of domestic demand in conjunction with a deterioration in business and household confidence.
The capacity utilization rate in Lazio's industries reached a peak in the second quarter of the year and then declined. The sectors with a greater propensity to export - chemicals and pharmaceuticals, mechanical machinery, and transport equipment - registered higher rates of growth in exports and turnover than the regional average.
Activity in the construction sector was stimulated by the expansion of residential building and by maintenance and renovation work on the existing housing stock. The value of new contracts put out to tender increased.
The expansion of tourism in Rome extended to a fourth year, boosted in particular by the increase in overnight stays by visitors from abroad. Passenger traffic through Lazio's airport system grew.
Regional employment grew; services and construction accounted for the increase. The average annual unemployment rate fell; the decline was concentrated in the first half of the year.
Excluding loans to the energy sector, the rate of growth in bank lending to customers resident in Lazio declined. Lending to the energy products and construction sectors accelerated. Excluding the energy sector, the deceleration was sharper in short-term than in medium and long-term lending.
The rate of growth in mortgage lending to households diminished as a consequence of the rise in borrowing costs and the slowdown in house prices. The expansion in consumer credit continued, both for loans granted by banks and, more sharply, for those granted by financial companies.
The flows of new bad debts decreased by comparison with the previous year for firms and households alike. The ratio of bad debts to total bank lending fell.
The change in bank funding in Lazio reflected slower growth in current accounts than in 2006 and a decrease in repos; investment in bank bonds accelerated.
During the year the negative balance between subscriptions and redemptions of Italian investment fund units worsened for equity and bond funds, while net fund-raising improved for money-market funds. The net outflows involved individually managed portfolios provided by banks, investment firms and (more markedly than the regional average) asset management companies.
Banks' networks continued to expand both through the growth in branches and with the development of networks for remote access to banking and financial services. The number of non-bank intermediaries active in Lazio increased.
