The economy of the South continues its slow, albeit constant growth in a positive trend that has been going on for two years. The data emerging from the Mezzogiorno Check-up prepared by Confindustria in collaboration with Studi e Ricerche Mezzogiorno (study center linked to Intesa Sanpaolo) explain that for the second consecutive year the economic results of the southern regions evaluated through five indicators that make up the Synthetic Index of Economy are positive showing an acceleration in 2017 equal to +15 points, but the recovery of the pre-crisis values is still limited, in fact last years level remains 40 points below the 2007 data.
Moderate growth of the southern regions was confirmed at +1,4% of the 2017 GDP which allows the South to keep pace with the rest of the country: confidence remains at encouraging levels confirmed by forecasts for 2018 which attest to +1,1, XNUMX%.
The data on employment does not reassure: 60 more employed than the previous year, but there are 400 jobs to be recovered compared to pre-crisis levels. Furthermore, one out of two young southerners does not work, over 1/3 of them do not work and do not study, leaving social problems at high levels, as well as the incidence of poverty at 19,7%.
The data relating to consumption are connected to employment: less available wealth implies less consumption, in fact the average monthly expenditure of southern families - in particular on transport, health, entertainment and culture - is 800 euros lower than that of northern families .
Positive numbers from companies that grow by 9.000 units, those online are around 7.000 and innovative start-ups well over 2.100. In addition to the 190 youth businesses, there are those financed by "Resto al Sud", the new business promotion tool for young southerners and which has registered over 3.500 applications for incentives in just a few months.
Investments in plant and equipment also did well, returning to growth at a level equal to 40%, especially in industry, supported by facilitation instruments such as the tax credit for southern investments, which thanks to 2,2 billion in incentives promoted investments of 6,4 billion euros, while remaining far from pre-crisis levels.
Instrumental investments also grew in the building sector at +17,2%, which remains the sector of the economy in the South that was most affected by the effects of the crisis, losing more than 26 companies.
The scenario is penalized by public expenditure on investments which has remained contained in the last two years and is at a minimum both due to public finance problems and administrative difficulties: from 22 billion euros a year in 2009, in 2016 it is estimated were just over half.
According to Confindustria and SRM, a robust infrastructural investment is necessary which will be able to create job opportunities and growth and favor the recovery of the construction sector, the last one to hook up to the recovery.
Exports are holding up, growing by +3,7% in the first quarter of 2018 thanks to the means of transport and agri-food sectors although the growth is not sufficient to reverse the figure of an unfavorable trade balance. The companies of the South, in terms of increase in added value, grew more than those of the rest of the country, particularly in industry in the strict sense, at +4,4%.
Massimo Deandreis, general manager of SRM, commented on the report data: “It is time to invest and believe in the South as a key element for the recovery of the whole country. In fact, Check-Up shows a South in which economic growth is mainly supported by 5 sectors: automotive, aerospace, agri-food, clothing and pharmaceuticals, where the South has a marked specialization (44% of VA manufacturing against the Italian average of 31% ) with companies fully integrated into national supply chains. Thus the South also discovers itself as a "supplier" with inter-regional trade going towards the Centre-North which for the five sectors is equal to 21 billion, a value almost equal to exports. If we add the potential of the South to be an energy, logistic and port hub in the heart of a Mediterranean - which thanks to Suez is increasingly strategic in global routes - we understand that the opportunities for development are all there."
