BARI – Puglia’s economic growth suffered a significant slowdown in 2023, as highlighted by the Bank of Italy report presented this morning in Bari by the director of the Puglia branch, Sergio Magarelli. According to the report, the region’s economic activity recorded an increase of 0.7%, a figure which is below the national average of 0.9% and in line with the average of the South.
“Growth, which was most intense in the first quarter, essentially stopped in the following months,” we read in the report. This decline has been attributed to several factors that have negatively affected various economic sectors in the region.
Industrial and Business Sector
The industrial sector recorded a significant contraction. In 2023, business value added decreased by 1.1%, despite the reduction in energy costs and an improvement in the conditions of supply of other production inputs. This decline has affected both exporting companies and those less oriented towards foreign markets, signaling a structural weakness that has deep roots.
Investments and Credit
The investment trend was negative, with an adverse impact deriving from an uncertain economic context, geopolitical tensions, an increase in interest rates and more restrictive credit access conditions. These factors have contributed to slowing growth and creating a less favorable environment for local businesses.
Construction sector
The construction sector also suffered a slowdown. Although the sector continued to grow, the loss of momentum was evident, particularly in the residential segment. The decrease in tax incentives for renovations and the decline in sales, also due to the increase in mortgage costs, have had a negative impact on the sector.
Services and Tourism
Despite sustained tourism demand, activity in the services sector has slowed. This slowdown was partly caused by the weakening of consumption dynamics, which reflected an economic context in a phase of contraction.
Conclusions
The Bank of Italy report highlights a complex situation for the Apulian economy, marked by a slowdown affecting several key sectors. The challenge for the future will be to stimulate a sustainable recovery, addressing structural critical issues and creating more favorable conditions for the growth and economic development of the region.
