Lombardy, one of the richest and most populous regions in Italy, has demonstrated an economic performance above the national average, standing out as the “locomotive” of the Italian economy.
The Covid-19 pandemic has severely impacted the global economy, but Lombardy managed a relatively better performance.
In 2020, while Italy's GDP fell by 9%, Lombardy recorded a smaller reduction of 7,5%. The recovery in 2021 was robust, with growth of 9,8% in Lombardy compared to 8,3% in the rest of the country.
However, in 2022, the Lombardia grew 2,9%, below the 3,7% national average, due to the impact of rising energy prices on regional industry.
In 2023, Lombardy once again surpassed the national average, with GDP growth of 1,2%, compared to 0,9% for Italian GDP.
Pre-pandemic performance
Before the pandemic, the Lombardia already showed superior economic performance. In 2018, the region's GDP grew by 1,7%, while Italy's grew by just 0,9%. The following year, 2019, Lombardy saw growth of 0,2%, slightly lower than the national growth of 0,5%.
Inflation
From the end of 2021, inflation once again became a central indicator. In December 2022, national inflation reached 11,6%, while in Lombardy it was 11%, better than the average for Northwest Italy (11,4%).
As of 2023, inflation in Lombardy has been consistently lower than national inflation for most of the year. On average, inflation in Lombardy was 5,5%, compared to 5,7% in the rest of Italy.
In sectors such as food and beverages, regional inflation was 9,1%, lower than the 10% nationally. However, in areas such as transport, recreation, accommodation and restaurants, Lombardy experienced inflation higher than the national average.
In the first five months of 2024, inflation in Lombardy remained close to or below the Italian average, not exceeding 1% in March.
Labor market
Lombardy stands out significantly in the job market. In 2023, the regional occupancy rate was 69,3%, against a national average of 61,5%. In the last quarter of 2023, the occupancy rate in Lombardy exceeded 70%, reaching 70,4%.
The female employment rate in Lombardy was 61,9%, almost equal to the total national average (men and women combined). Among young people aged 25 to 34, the occupancy rate was 80,6%, compared to 68,1% in Italy. For women in this age group, the difference was even greater: 74,2% in Lombardy versus 59,5% nationally.
Unemployment
The unemployment rate in Lombardy decreased to 4% in 2023, 3,8% below the national average and 1,6% lower than in 2019, before the pandemic. The unemployment rate among young people aged 25 to 34 fell from 6,7% to 4,1% in four years.
Employment contracts
There was a significant growth in indefinite-term employment contracts. In 2023, there were 87.239 net activations of this type of contract, an increase compared to 2022, which recorded 79.488 activations. The number of fixed-term net activations decreased, but the increase in permanent contracts offset this drop.
Sources: Banca d'Italia and Istat, Photos: Depositphotos
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