Veneto GDP, Padua is a locomotive, but Vicenza is a leader in productivity

MESTRE (Venice) – Every day the Veneto produces 538 million euros of gross domestic product (GDP) which, conventionally, is measured through the sum of final goods and services generated in a given period of time. It is called internal because it refers to what is produced by Veneto companies, by companies from other Italian territories and by foreign production companies present in our region. These 538 million correspond to almost 111 euros of GDP per day for every Venetian citizen, including newborns and over centenarians. In Italy the average figure is 99 euros per capita.

The regional differences are very evident: if in Trentino Alto Adige the GDP per inhabitant per day is equal to 146 euros, in Lombardy it is 131.8, in Valle d’Aosta 130.1, in Emila Romagna 118.9 and in Veneto 110, 8. On the other hand, in Campania the GDP per capita per day is 63.4 euros, in Sicily 60.1 and in Calabria 57.9.

From the comparison with the other countries of the European Union we see a significant gap, especially compared to the countries of Northern Europe. If in Luxembourg the daily wealth per inhabitant is 336 euros, in Ireland it is 266, in Denmark 179, in the Netherlands 164, in Austria 149, in Sweden 145 and in Belgium 140. We are among the 27 EU countries in 12th place.

We no longer have big businesses

It should be emphasized that Countries with few inhabitants, but with a significant presence of financial activities, tend to have levels of wealth that are significantly higher than others. Furthermore, Italy and also Veneto are realities that no longer have very large companies and multinationals, but are characterized by a production system composed almost exclusively of labor-intensive micro and SMEs which, on average, records not very high productivity levels, provides lower wages than larger companies, thus influencing the amount of consumption, with lower levels of investment in research and development than those of large production companies.

Until the early 1980s, however, we were leaders. Now we are thanks to SMEs

Net of inflation, over the last 30 years the average wages of Italians have remained stagnant, while in almost all of the EU they have increased. Among the causes of this result are the asphyxiated economic growth and a low level of labor productivity which has affected our entire country since 1990, especially in the service sector. One of the causes of this result is also to be found in the fact that, unlike our main European competitors, in the last thirty years the competitiveness of our country has suffered from the absence of large companies. The latter have almost disappeared, certainly not due to the excessive number of small production companies, but due to theinability of the big playersoften of a public nature, to face the challenge triggered by the change caused by the fall of the Berlin Wall and “Tangentopoli”.

In fact, until the beginning of the 1980s, Italy was among the European – and in many cases also world – leaders in chemicals, plastics, rubber, steel, aluminium, IT, cars and in pharmaceuticals. Thanks to the role and weight of many public economic bodies (Iri, Eni and Efim) and large public and private companies (Montecatini, Montedison, Enimont, Montefibre, Alfa Romeo, Fiat, Pirelli, Italsider, Polymer, Sava/Alumix, Olivetti, Angelini, etc.), these companies guaranteed employment, research, development, innovation and productive investments.

The history of Porto Marghera, for example, is clearly reflected in this narrative. And almost 45 years later, unfortunately, we have lost ground and leadership in almost all the sectors in which we excelled. And this happened not due to a cynical and cheating destiny, but due to some events that changed the course of history: the fall of the Berlin Wall, for example, reunified Europe, reactivated commercial relations with the countries present behind the “Iron Curtain”, pushing many of our large companies employed in the sectors where we were leaders out of the market.

Equally disruptive for our country were the effects caused by “Tangentopoli” which exposed the limits, in particular, of many state-owned companies which until then had remained active thanks to the protected market in which they operated and the political support that they had received from almost all the parties present in the so-called “first Republic”. Despite this, over the last 30 years Italy has remained among the most economically advanced countries in the world and this is due to its SMEs which continue to “dominate” the international markets.

Regions: productivity is at the top in Trentino AA and Lombardy

In terms of labor productivity, measured by comparing the added value (GDP net of direct taxes) to the standard work units (AWU), in 2024 the average figure in Italy is equal to 77 thousand euros per AWU, or 211 euros on average per day. At a territorial level, the most virtuous situation is recorded in Trentino Alto Adige with 253 euros per day per ULA. This region of the North-East can count on a GDP (or rather added value) of 52.4 billion euros, 556,000 standard work units and an annual productivity per AWU of 92,595 euros. Lombardy follows with 251.4 euros per day per AWU, Valle d’Aosta with 230.8 euros per AWU and Emilia Romagna with 226.6 euros per AWU. Veneto ranks eighth with 213.2 euros per AWU.

The realities where productivity is lower, however, can be seen in the South which, compared to the Centre-North, tends to have an economy less characterized by the presence of manufacturing companies and credit/financial/insurance activities. Therefore, Sardinia closes the national ranking with 165.7 euros per day per AWU, Calabria with 159.5 euros per AWU and Puglia with 158.2 euros per AWU.

Padua is the locomotive of the region, but Vicenza records the highest productivity

In terms of GDP (or rather added value) the most virtuous province of Veneto is Padua which in 2024 can count on 35.6 billion euros of added value (VA), on 478 thousand AWUs, an annual labor productivity of 74,533 euros and a productivity per AWU per day of 203.6 euros. In terms of VA, immediately after the province of Padua we see Verona with 34.6 billion euros and Vicenza with 33.4 billion. If, however, we analyze labor productivity per AWU per day, Vicenza leads the regional ranking with 230.2 euros. Followed by Treviso with 225.8 euros for ULA, Belluno with 218 euros for ULA and Venice with 206.8 euros.

Labor productivity (per AWU-per day) – provinces, year 2024