The Bank of Italy presented its annual report on “The economy of Friuli Venezia Giulia”, setting out how the region performed in 2024 across output, firms, labour markets, households, credit and decentralised public finances. Using its quarterly regional indicator (ITER), the Bank estimated real GDP increased by 0.5% on average in 2024 after a 0.5% contraction in 2023, slightly below the national average of 0.7%, with consumption and public spending, including National Recovery and Resilience Plan (PNRR) funds, supporting activity amid weak external demand. Industrial activity declined for a third consecutive year as foreign sales weakened in most key sectors except shipbuilding, and investment growth halted due to demand uncertainty and still-high, though falling, financing costs. Construction continued to expand but at a slower pace as PNRR works offset weaker residential activity following the scaling back of the Superbonus incentive, while housing transactions rose after a sharp fall in 2023. Non-financial private services returned to modest growth on stronger consumption and tourism, particularly by foreign visitors, and early-year port-traffic disruption linked to Red Sea navigation problems later eased; employment rose for the self-employed and permanent employees, pushing unemployment down, while household income increased but consumption remained cautious and savings shifted toward higher-yielding instruments such as government bonds and mutual funds. Loans to firms fell further due to weak demand and high credit costs, while lending to households expanded with a recovery in mortgages and consumer credit and a slight easing of supply conditions in the second half of the year; credit quality remained high by historical standards but worsened slightly late in the year. Spending by regional and local entities strengthened, combining higher current expenditure, including health-sector staff and purchases, with strong growth in capital spending and investment supported by favourable budget conditions and the progressive implementation of PNRR projects.
Bank of Italy 2025-06-10
Bank of Italy publishes 2024 Friuli Venezia Giulia report showing 0.5% real GDP growth and weaker corporate credit
The Bank of Italy's annual report on Friuli Venezia Giulia highlighted a 0.5% GDP growth in 2024, supported by consumption and public spending, despite weak external demand. Industrial activity declined, while construction and non-financial private services saw modest growth. Loans to firms decreased, but household lending expanded, with credit quality remaining high despite a slight late-year deterioration.