Italy's southern regions could experience "permanent underdevelopment" with a seven-year long recession and a significant drop in population and industrial output major issues of concern, a report from the Association for Industrial Development in Southern Italy has warned.
Saving French banking system with Greece's 2010 bailout, drove Italy & Spain much closer to a financial crisis today. pic.twitter.com/2WGhlS0Tox
— Mark Constantine (@vexmark) July 6, 2015
Southern Italy's GDP dropped in 2014 for the seventh year in a row, while economic output has grown by just 13 percent over the period between 2001 and 2014.
These statistics are particularly concerning when contrasted to other European countries, with even the under-fire Greek economy — which grew by 24 percent over the same period — outperforming southern Italy.
Widening North-South Divide
Economic figures such as this have merely confirmed the long-held thoughts of many Italians, who are becoming increasingly concerned about the divide in wealth between the country's north and south.
For example, one in three people are at risk of falling into poverty in Italy's southern regions, while the figure is one in ten in the north.
The downturn in the economy has also triggered an exodus in people leaving southern Italy, either moving to the north, or other parts of the EU.
The southern regions recently experienced the lowest number of registered births in 150 years, while since 2001, close to 750,000 people have moved to Italy's north or center, primarily for employment or education reasons.
Shadow economies in Italy & Germany were as large as Austrian GDP in '13 http://t.co/SHlFC7DCq4 pic.twitter.com/A12a9zbiwb
— Bruegel (@Bruegel_org) July 28, 2015
Of these people, more than half a million were below the age of 34, while 200,000 were university graduates, leading to fears over the long-term future of many cities and regions in southern Italy, with concerns it may experience a 'brain drain' as young people move elsewhere for opportunities.
More Needs to Be Done
Researchers say that drastic action is needed in southern Italy to prevent the country from falling further into economic depression, and to avoid the subsequent social effects of such an economic crisis.
Campaigners have called on the EU to help develop trade and tourism industries in Italy's south, as an increasing number of Eurozone countries and their regions struggle economically.
Others have argued that the structure of the single-market Eurozone is a major factor which contributes to the suffering of many regions, with a recent study arguing that high unemployment and low growth were in fact longstanding features of the Eurozone, even before the global financial crisis.