2024-03-20 02:11:08
BOLZANO. Profitability is good, turnover and investments are stagnating. According to the spring survey of Ire economy barometer (Bolzano Chamber of Commerce) il 91% of businesses rate it positively profitability In the 2023 and the 93% expresses trust for the 2024. However, the signs of a slowdown that emerged last autumn regarding the dynamics of investments and turnover are confirmed. The Ire estimates growth of Pil South Tyrolean equal to 0,8%.
However, the growth in turnover, driven above all by larger companies, has progressively weakened and appears essentially due to inflation. Investment activity was slowed down by the sharp increase in interest rates, while the cost dynamics were slightly attenuated compared to the strong increases of recent years, especially as regards the energy component.
The labor market situation still appears positive, with the number of employed employees that in 2023 it was on average equal to approximately 226.400 unit, i.e. the 2,2% more than 2022. According to businessmen and women, in 2024 the pressure on production costs should ease further. This, together with the increase in the sales prices of goods and services, will allow the majority of companies to preserve adequate profitability margins. However, South Tyrolean companies generally plan to reduce investments, especially those in machinery and vehicles.
Expectations regarding turnover differ considerably between different sectors: the greatest optimism can be felt in services and in Wholesale. On the contrary, a decline in turnover is expected in the construction, transport, trade and vehicle repair sectors.
The European economy
Globally, 2023 has proven to be a year of growth. L’Chinese economy achieved the objective set by the government which consisted of an increase around 5%while the United States recorded an increase in GDP higher than expected and equal to 2,5%, thanks to the good trend in consumption. The economic situation inEurozone however, it confirmed its slowdown in the last quarter of the year, due to the effects of the tightening of monetary policy on domestic demand and the slowdown in industrial production.
Added to this are the negative effects on transport costs associated with tensions in the Suez Canal, the main trade route between Europe and Asia. The European Commission has revised its growth forecasts for the Eurozone downwards compared to last autumn and currently estimates an increase in the GDP of the 0,5% In the 2023 and of 0,8% In the 2024. L’inflation should slow down from 5,4 percent recorded last year at 2,7% In the 2024 et al 2,2% In the 2025.
At the level of individual countries, the economic cycle remains particularly weak Germaniawhose gross domestic product is expected to grow only by this year 0,3%.The Italian GDP recorded an increase of 0,6% In the 2023. For the 2024 the European Commission forecasts slightly higher growth, equal to 0,7%.
The decrease in inflation was more intense than in the rest of Europe, so much so that this year an increase in prices of around two percentage points is expected. The labor market continued its expansionary phase and in December the employment rate reached 61,9%while the unemployment rate fell to 7,2%.
The South Tyrolean GDP
Despite the downward revision of growth estimates throughout Europe, in South Tyrol the climate of confidence among businesses and consumers remains at high levels. The labor market situation remains positive, as does the trend in tourist presences. However, in some sectors there is a weakening of turnover, partly due to the slowdown in investments linked to high financing costs and the loss of purchasing power of families. The Ire therefore confirms the forecast of a increase in South Tyrol’s GDP equal to 0,8% In the 2024.
The president of the Chamber of Commerce, Michl Ebneronce again underlines the problem of staff shortage. «The climate of confidence among South Tyrolean companies is still high and in many sectors there is a shortage of qualified profiles. The Bolzano Chamber of Commerce is involved in numerous initiatives to stem this problem. These include the creation of the service “Work in South Tyrol“, which provides information and advice to people who want to move to Alto Adige for work reasons”, closes Ebner. M.D.
2024-03-20 02:11:08