The economic disparity between Italy's central-northern and southern regions has resurfaced in 2023, marking a departure from the alignment observed in the previous two years, as reported by Svimez, the association for industrial development in southern Italy. According to Svimez's report, the Gross Domestic Product (GDP) in southern Italy is projected to increase by 0.4% in 2023. In contrast, the central and northern regions are expected to see a growth of 0.8%, while the national level anticipates a 0.7% expansion. This regional discrepancy is attributed to variations in consumption trends, with the South experiencing a more subdued economic performance. Svimez notes a notable contraction in the disposable income of households in the South, amounting to 2%, which is twice the contraction observed in the Centre-North.
Looking ahead, Svimez's forecast for 2024 indicates an overall national GDP growth of 0.7%, with the Centre-North and South contributing +0.7% and +0.6%, respectively. In 2025, the association envisions a more robust growth, with the national GDP expected to rise by 1.2%. The Centre-North is projected to lead with a growth of +1.3%, while the South is anticipated to experience a growth of 0.9%. The forecasted growth is intricately linked to the implementation of the European Union-funded post-Covid National Recovery and Resilience Plan (NRRP). The NRRP aims to propel the Italian economy towards greener and more modern practices, acting as a catalyst for economic rejuvenation. As Italy navigates the complexities of regional economic disparities, the NRRP stands as a strategic initiative to foster sustainable growth and development across the nation.
