In the first six months of 2017, the Lazio economy continued to expand, albeit moderately. In general, the picture emerging from the Bank of Italy report released today is that of a system characterized by “definitely positive data,” the Institute sources said. Investments are finally split (though they remain below the national average). At the end of the semester, however, there was a slowdown in corporate lending. Credit quality is improved for companies and is stable for families. The share of bad debts on total bank loans fell to families (8.8%) and stabilized for businesses, while underlining the survey – “remaining on historically high values”.
Industry and services grow, not buildings
Growth was related to industry and services, however, they contracted construction (production levels dropped: it affected the decline in the value of public works competition announcements). The best trends were recorded by companies more oriented to foreign markets, chemistry and metal mechanics.
Exceeding export of 15.5%
Regional exports rose steadily (15.5%), driven by means of transport (mainly cars and components), chemistry and pharmaceuticals. Sales growth abroad has focused on the countries of the European Union and the USA. However, expansion to Asian markets continued.
They invest their investments
Businesses – said Bankitalia’s report – have confirmed the growth in investment expected for 2017. The share of those upgraded to them has been higher than those that have revised downward. The companies that have benefited from the tax concessions related to the National Industry 4.0 plan are curca one fifth of the regional companies.
Increased employees, especially with fixed-term employees
Growth in employment (1.5%) in all sectors (except in construction (-3.9%) and declining unemployment (11%). Growing older workers (occupied with at least 45 years: 2.4%) and above all fixed-term employees (+ 15.1%, more than twice as long as they are indefinitely). In the private sector the net recruitment flow was positive (56.335), higher than the first six months of 2016 but, indeed, driven by the increase in forward contracts.
Family loans increase
In June, the growth in lending to banks and financial corporations was 3.3% (from 2.4 in the end of 2016), on the expense of spending on durables and housing (but also through extended credit supply conditions).
Mortgages and surrogates continue to grow
The rise in mortgages (2.7% was favored by the low level of rates and real estate market conditions. The low differential between fixed and variable rates has led to greater use of fixed rate loans (which account for over ¾ of new mortgages).
Bank deposits increase, households focus on managed savings
Bank deposits grew (1.7%) to replace savings (-4.2%) with current accounts (+ 5%). Lazio’s families are privileged to manage managed assets. Shares of mutual funds grow (41 to 48% of custody securities) at the expense of alternative forms of investment (bank bonds and government bonds).