Source: press office of Unioncamere Veneto

In 2010, global GDP grew by 5%, European GDP by 1.7%, while Italy registered a 1.3% growth. The Veneto region closed 2010 with 1.6% growth, thus leaving the worst of the crisis behind (Veneto GDP had suffered the largest decrease of the last ten years in 2009: -5.9%).
This increase is in step with Lombardy (+1.7%) and slightly better than Friuli Venezia Giulia, Emilia-Romagna (both +1.2%) and Tuscany (+1%).

The economic situation in the Veneto region was dealt with during the presentation of the 12^th Veneto economic report that outlines 2010 trends in local economy and forecasts for 2011.

Participated in the presentation: Giuseppe Fedalto, president of Unioncamere Veneto, Gian Angelo Bellati, director of Unioncamere Veneto, Francesca Michielin, Italian officer of the EU Directorate General for Regional Policy, Fabrizio Pezzani, full professor of Public Administration Economics and Management and head of research for the NETCAP network at Bocconi University in Milan, and Mario Volpe, associate professor of Economic Policy at Ca' Foscari University in Venice.
The growth in GDP went hand in hand with increasing domestic demand (+1.2%): while private consumption (+0.7%) and government consumption (-0.2%), remained quite unchanged. On the other hand, gross fixed capital formation grew by 4% (it registered -13.9% in 2009).

Exports have played a key role: after a 21.5% decrease in 2009, they have been the most dynamic item (+16.3%), € 45.6 billion (6.4 more than 2009) worth, even though they don't still reach 2007 and 2008 levels (€ 50 billion).

2010 foreign trade in the Veneto region accounted for the 13.5% of total national exports. Germany was confirmed the main trade partner (13.7%), followed by France (10.7%).

China showed significant growth: € 1.4 billion, that is, 3%. Imports increased even more: € 37.9 billion, +23.7%. However, this recovery wasn't strong enough to support a remarkable recovery in the production structure and job demand as well: active companies remained essentially stable (-0.2%), while there was a decrease in employment (-15 thousand units, they were -46 thousand in 2009). The Wages Guarantee Fund (CIG in Italy), with its nearly 125 million hours authorised, helped slow down the decrease.

SECTOR ANALYSIS

Agriculture in the Veneto region restarted (+7%) after the negative figures registered in 2009. The manufacturing industry performed well too: the regional index of industrial production (according to the VenetoCongiuntura survey) showed an average annual change of +6.3% with positive figures in all quarters of 2010, even though micro-enterprises registered a negative change (-2.3%). On the other hand, big companies (+11.8%) and medium-sized enterprises (+8.3%) acted as driving forces.

The construction industry experienced a 8.5% decrease for what concerns investments.

Retail sales showed 1.2% average year-over-year increase, especially due to food products (+2%).

The automotive market continued to fall: new car registrations decreased by 8.6%. There was a 14 thousand global reduction in the number of vehicles compared to 2009.

According to forecasts by Unioncamere Veneto based on data by the Bank of Italy, loans to firms in the Veneto region grew by 5.6% in 2010 (+3.9% in Italy).

Bank financing increased mainly thanks to loans to households (+7.8%), while enterprises slightly picked up (+2.9%).

As for tourism, arrivals resumed their growth (+4.6%, over fourteen millions and a half). In the transport sector, the flow of passengers (12 millions) and goods (45.2 thousand tons) through local airports showed growth (+4.2% and +8.5% respectively).

The port of Venice, on the other hand, closed 2010 with 26.2 million tons of goods (+4.1%), while passengers (2 millions) rose by 9.1%.

2011 FORECASTS

Forecasts for 2011 are encouraging, even though they don't put an end to the crisis: the economy of the Veneto region is expected to register 1.3% growth in 2011, due to continue in 2012 with a 1.2% further increase. Expectations are that local figures will be few decimals higher than national growth (+0.9% in 2011 and 2012).

Giuseppe Fedalto, president of Unioncamere Veneto, commented that: «2010 was a year of "positive transition". Forecasts for this year are encouraging even though it will not put an end to the crisis.
It seems that recession ended. During this adverse period, the local economy suffered greatly, but positive aspects emerged as well, emphasising the excellence of local industry: it has been able to resist competition, demonstrated to be sound and able to adjust to transitional circumstances. It has also been able to deal with industrial conversion and project and product adjustment to new conditions. Companies in the Veneto region are both reshaping their business models and maintaining their market coverage,  not only over advanced economies but also developing countries, where global recession has been less severe».

Gian Angelo Bellati, director of Unioncamere Veneto:
«In this international context that will be probably influenced by the Libyan crisis and the Japanese disaster, fiscal federalism might be more and more significant.

Keeping more resources for our region would not be a "concession", since fiscal surplus in the Veneto region had been around € 18 billion per year in the period from 2006 to 2008. But it must go hand in hand with a reduction in the fixed costs incurred by the public sector, which is the real problem with the Italian public finance. The Veneto region is able to efficiently manage public spending. If all the Italian regions took our measures, we would be able to cut € 28 billion worth of spending».

Consult the slides by the director of Unioncamere Veneto: The Veneto region: Europe and federalism 

The preview of the annual report can be consulted at
http://www.unioncameredelveneto.it/pubblicazioni/pub4.htm 

Read the presentation by the head of the Ufficio Studi Pitingaro

Fabrizio Pezzani, full professor of Public Administration Economics and Management and head of research for the NETCAP network at Bocconi University in Milan, introduced the notions of collaborative competition and reconstruction of the social and economic capital.
Looking beyond the figures is always worthwhile.