VENICE – The Veneto economy will slow down in 2024 after the +1.1% of the regional GDP last year. But businesses remain positive despite the decline in production and exports (-4.4% at the beginning of the year): almost 9 out of 10 expect to close 2023 with a profit or break even. «We have recorded a weakening of the Veneto economy due to the decline in the world economy, high interest rates and the erosion of family savings due to inflation, which in any case is recording a decline with +1.3% in May – comments the director of the Bank of Italy, Venice branch Pier Luigi Ruggiero – this beginning of 2024 is characterized by great uncertainty”. Employment growth continues (+ 3.7%) but less and less is being invested and the large capitalization of companies makes it possible to reduce the use of bank loans (further decline of 6.6% in April 2024, banks are also making selection ). In short, prudence reigns in Veneto, families take out much fewer mortgages to purchase homes (-21.2% in the first quarter of 2024), ask for more consumer loans and invest in government bonds (doubled to almost 22 billion in March 2024, again 101 billion in deposit) while tourism sets new records thanks above all to foreigners: «The drop in real income due to inflation has probably led to a reduction in Italians’ spending on holidays», underlines Vanni Mengotto, director of the research office Bankitalia Venezia, which in its usual report on the Venetian economy also makes an in-depth analysis of the consequences of the decline in the population, a risk for future development: there is a shortage of workers today, let alone tomorrow, and the productivity of businesses remains low (like salaries ) compared to the more advanced European regions. With this scenario of aging and depopulation, who will pay for welfare and who will work in healthcare?
