Italy's Southern Regions Show Economic Resurgence

Italy's southern regions are closing the economic gap with the north, said Bank of Italy Governor Fabio Panetta. Post-COVID recovery has led to improved GDP, exports, and employment rates in the south. Structural changes and increased investment are essential to sustain this growth.

Italy's long-underdeveloped southern regions are showing signs of economic resurgence, according to Bank of Italy Governor Fabio Panetta. Speaking in Catania, Sicily, Panetta highlighted that the south's GDP and employment growth rates have outpaced those in the richer north since the COVID-19 pandemic.

From 2019 to 2023, the GDP in the south rose by 3.7% compared to 3.3% in the center-north. Exports grew by 13%, outpacing the north's 9% growth, while employment increased by 3.5% against 1.5%. Panetta credited this partly to post-COVID stimulus and welfare measures but noted that structural shifts were also contributing.

Panetta emphasized that further investments in infrastructure and reforms are critical for sustaining this momentum. Improved road, rail, and port infrastructure, as well as solutions to chronic water shortages, are urgently needed. The region's strategic location and stability could also attract businesses relocating due to geopolitical crises.

(With inputs from agencies.)