No. 951 - The development prospects of the Southern Italian economy

by Antonio Accetturo, Emanuele Ciani, Sauro Mocetti and Andrea Petrella
July 2025
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This work analyses the recent economic situation of Southern Italy and documents the current level of disparities compared with the Centre-North, along different dimensions. It also includes some quantitative analyses on the development prospects for the economy of the South.

After a long period of divergence, over the past five years, the Southern Italian economy has grown more than that of the Centre-North. The recovery has coincided with a strengthening of firms' economic and financial conditions and of the business environment. However, the gap with the Centre-North in terms of per capita GDP remains wide. Employment growth in knowledge-intensive services can generate positive externalities and job opportunities for less-skilled workers.

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