In 2009 the economy of Liguria experienced the worst recessionary phase in the wake of the global economic and financial crisis. Some signs of recovery began to emerge in the second half of the year, but they are still weak. However, the setback in economic activity in 2009 was less severe than in Northern Italy. This reflected the sectoral structure of Liguria's economy, which is characterized by a relatively limited role of industry and international trade, and a significant incidence of private and public services. The same structural factors that buffered the effects of the downturn through most of 2009 could limit the pace of recovery itself.
Industrial production plunged, with a negative impact on firms' investment and profitability. The cyclical low was reached in the first part of the year, while the last few months have marked a moderate recovery path. Shipbuilding and high-technology sectors benefited from multi-year orders, largely acquired before the crisis; deliveries of some of these goods help to explain the growth in exports.
Activity also diminished in construction. In the presence of dearth in new construction, residential building has been underpinned by renovation works. In the real estate market, the three-year downtrend in the number of transactions eased somewhat and prices steadied. After a prolonged period of stagnation, some public works have started since the end of 2009; however, major infrastructure work projects, only partially financed to date, faced difficulties in their implementation.
Cargo traffic through Liguria's ports fell significantly, reflecting both the contraction in international trade and the decline in activity in heavy industry and oil refining. Signs of recovery emerged in the first few months of 2010, albeit the operational and structural problems impeding efficiency in the transport of goods remain largely unsolved.
In distribution and commerce, retail sales diminished. The decrease was concentrated in traditional outlets, while nominal turnover of large-scale distribution companies expanded. Overnight stays by tourists at the region's lodging facilities declined slightly, particularly as regards international tourists.
The expansion in employment, fostered by regularization of immigrants legal status over the last several years, came to a halt. The number of persons in employment fell, though less sharply than in the regions of North-West overall. The number of job-seekers rose; the increase was curbed by ample recourse to the Wage Supplementation Fund, first through ordinary interventions, then under extraordinary and special interventions.
Bank lending to households grew, although less vigorously than in 2008. Lending to firms contracted slightly, especially for large and medium-sized companies and for firms with less robust financial performance and standing. However, there was an increase in medium and long-term loans to firms, in part for financial restructuring. Small firms' access to credit was supported by the region's collective loan guarantee consortiums. The average interest rates on bank loans decreased substantially, in line with market rates.
The ratio of new bad debts to outstanding loans was higher than in 2008. The ratio in Liguria is similar to the national figure for loans to consumer households and considerably lower than the national average for loans to firms.
Banks' fund-raising in the region in the form of current account deposits and bonds increased appreciably. The overall value of securities held by banks for custody and administration remained practically unchanged. Within the aggregate, government securities declined substantially, while non-bank bonds, investment fund units and equities increased in connection both with an initial resurgence of demand for these instruments and with the rise in their market prices.
