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Southern Italy set to keep trailing north, centre - report

South hit hardest by crisis, Svimez says

17 October, 16:19
Southern Italy set to keep trailing north, centre - report (ANSA) - Rome, October 17 - Southern Italy risks enduring slower economic growth than the centre and the north again in 2013 and 2014, after years of suffering the economic recession more that other Italian and European regions, according to a new report released on Thursday.

Svimez, a group that promotes economic development in southern Italy, said the south should post economic growth of about 0.1% in 2014, compared to a forecast 0.7% increase in gross domestic product on a national level and a 0.9% gain in the north. The south of Italy has been in recession since 2007, the report said. It contracted 3.2% in 2012, compared with a 2.1% contraction in the north.

The 2013 drop is forecast at 2.5% compared with a national contraction set to be 1.8% and the centre-north on course to be down 1.6%.

Industrial production in the South has declined 25% since 2007, compared to Germany's 40% increase and Spain's 10% gain, Svimez said. Employment fell 24% and investments plummeted 45% in the period, according to the report.