Umbria’s economy slowed in 2023, construction and tourism good. The picture that emerges from the latest report from the Bank of Italy

PERUGIA – The most positive data that make up the picture of Umbria’s economic activity come from construction and tourism. Activity…

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PERUGIA – The most positive data that make up the picture of Umbria’s economic activity come from construction and tourism. Activity which, with reference to 2023, has shown signs of a general slowdown with a GDP growth of 0.5 percent. Among the factors that have had the greatest impact are the weakness of domestic and foreign demand, but also “the marked increase in the cost of financing”. The picture takes shape with the analysis of the report “The Economy of Umbria”, which was drawn up by the Perugia branch of the Bank of Italy and whose data were presented at the headquarters of the Automation School for banking managers. Miriam Sartini, Paolo Guaitini and Lucia Lucci explain them, with many useful ideas to outline the scenario. A scenario from which positive signs also emerge.
EMPLOYMENT FRONT
Like, for example, that of employment, growing by 2.6 percent. However, it emerges from the report that the employment sector, in the long term, will be conditioned by the demographic dynamics that have been underway for a decade and by the progressive aging of the population. However, it should be noted that in the last period (the report always refers to 2023) employment has started to grow again. In particular, net hiring, which increased by around a third compared to 2022. The unemployment rate consequently fell to 6%. From the point of view of companies, however, there is a signal, that relating to the difficulty of finding manpower, especially in the construction sector. Furthermore, despite the good context on the employment front, family consumption has slowed down: the growth rate for 2023 stands at 2%. A significant drop (12.4%) was recorded in the sale of homes, also due to the greater cost of mortgages.
CONSTRUCTION AND TOURISM
On the business analysis front, after the marked recovery in 2022, a decline in agricultural activity can be noted. In industry, the negative trend underway since the second half of the previous year continued. The minus sign characterizes the metals sector in particular, while mechanics and clothing provided a positive contribution. On the other hand, construction is recording a phase of expansion (3.2%) which, the report underlines, has benefited from the acceleration of public works. In detail, Umbria, with the Pnrr, has recorded “a more advanced awarding of tenders compared to the rest of the country”. At the end of 2023, the housing redevelopment sector also had an impact in view of the reduction of tax incentives. The tertiary sector, with the recovery of post-pandemic sales running out, is supported by tourism. Here Umbria records widespread growth throughout the territory, a little more marked in the Ternano and Amerino areas, although positive signs can be found in every area. In general, regarding tourist flows, those from southern Italy and eastern Europe record the most important data. In this context, it was underlined, the San Francesco d’Assisi airport played an important role, recording a +47.1% of passengers. The report also states that, looking at the appearance of the various types of accommodation, farmhouses stand out in terms of popularity and in general people like holidays in Umbria (with a very high rating compared to the national average, 9.1).
The report also touches on the topic of public health, where Umbria has “a higher staffing level than the national average”. However, over the next 5-10 years, the retirement of a growing number of employees (around 1400) including doctors, nurses and technicians will have an impact.

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