Monetary restriction and uncertainty due to geopolitical tensions slowed down economic growth in 2023, including in Molise, which recorded a tepid +0.9%. Domestic demand slows down due to the increase in the general level of prices and the rise in interest rates. Exports, however, have started to grow again, driven above all by sales of chemical products
He writes it Bank of Italy in the annual report on the economy of the regions in Italy.
He grew up industrial sector, benefiting from the expansion of the transport sector, largely made up of local units of multinational companies; indications of growth also emerged among the companies based in Molise surveyed by the Bank of Italy, albeit with a marked slowdown compared to the previous year. Industrial investments, however, showed a clear decline.
Instead, it stabilizes construction sector on activity levels higher than those before the pandemic. The employed and active population have continued to grow but, due to the demographic decline, they are unable to rise above pre-pandemic values. Contractual wages increased, although only partially recovering the erosion of real incomes due to inflation.
Family income grew in nominal terms but purchasing power was reduced due to the sharp increase in prices, which affected especially the weakest families.
Bank credit to businesses and families has reduced due to the decline in demand, influenced by high interest rates. Credit quality improved slightly overall.
Finally, in 2023, the current expense primary of local administrations has continued to grow, fueled above all by disbursements for the purchase of goods and services. The increase in capital expenditure continued, also thanks to the significant increase in investments for the implementation of the projects envisaged by the PNRR, carried out above all by the Municipalities. Current non-financial revenues have grown, in particular for the Molise Region, whose deficit in the previous year had reached a per capita value well above the average of ordinary statute Regions. The consolidated debt of local administrations began to decline again, remaining at a per capita level lower than the national average.
