by InTrieste
Banca d’Italia presented its annual report on the economic performance of the Friuli Venezia Giulia region this Wednesday, offering a detailed analysis of the economic challenges and resilience of this northeastern Italian area. Marco Martella, director of Banca d’Italia Trieste, provided insights into the future prospects of the region’s economy in an exclusive interview.
The report highlighted that in 2023, economic activity in Friuli Venezia Giulia experienced growth, albeit at a slower pace compared to previous years. The regional economy faced significant hurdles in the second half of the year, primarily due to rising energy prices and a weakening in both domestic and foreign demand. The export sector, closely tied to Germany’s economy, was notably impacted as Germany’s growth decelerated, exerting a negative influence on regional exports.
Manufacturing value added in the region declined by 3.7% in 2023, a downturn largely attributed to the diminished foreign demand. After two consecutive years of robust growth, regional exports at current prices fell by 13.6%. When excluding the transport sector, particularly ships, the decline was more moderate, at 7.5%.
Real estate transactions also saw a significant decrease, falling by 11.8%, driven by the increased cost of credit. Conversely, house prices experienced a modest increase of 2.1%. Despite these challenges, local government spending rose by 16% in 2023, bolstered by funding from local entities, European structural funds, and the National Recovery and Resilience Plan (PNRR).
The tourism sector emerged as a bright spot, showing remarkable performance throughout the year. The sector’s success underscores the region’s attractiveness and its ability to draw visitors, contributing positively to the local economy.
Looking ahead, Director Martella remained cautiously optimistic. “It is hard to make predictions for the rest of the year,” he stated, “but it is reassuring that economic growth is stable and the economy is resilient.”
As Friuli Venezia Giulia navigates these economic headwinds, the region’s adaptability and strategic investments in key sectors may provide a foundation for future growth and stability.
