Summary
The Covid-19 crisis has hit all areas of the country. The measures adopted by the national and European authorities have partly mitigated the fall in output observed in 2020, also at the territorial level. The vaccination campaign, the gradual relaxation of the restrictions introduced to contain the virus and the continuation of government intervention in favour of households and firms helped to support the recovery in the first part of 2021. According to the Bank of Italy’s quarterly indicator of regional economic activity (ITER), the recovery was more marked in the North. Exports have grown in all areas and, according to firms’ responses, investments are higher than the plans formulated the previous year; firm liquidity has continued to increase. Positive indications are also observed in terms of consumption and income; savings continued to be largely directed towards liquid financial instruments, such as deposits. Labour market conditions show signs of improvement; in the first eight months of this year, jobs in the non-agricultural private sector increased. Credit dynamics mainly followed that of loans to firms, which slowed down; loans to consumer households accelerated thanks to the recovery of consumer credit and the further expansion of mortgages. The non-performing loan rate of loans to firms decreased in all areas, while that relating to loans to consumer households has remained at low levels. The investments envisaged by the PNRR will be crucial for the economy to return to stable growth.
