Ratio 4 Small regions Large regions Top 20 % richest …

[Pages:4]Regions and Cities at a Glance 2018 ? ITALY



Economic trends in regions

Regional gap in GDP per capita, 2000-16

GDP per capita in USD PPP

55 000

50 000

45 000

40 000

35 000

30 000

25 000

20 000

15 000

10 000

2000

2005

2010

Highest region Bolzano-Bozen 51 567 USD

Italy 33 537 USD

Lowest region Calabria 20 323 USD

2016

Index of regional disparity in GDP per capita, 2016

Top 20 % richest over bottom 20% poorest regions

2016

Ratio 4

Small regions

(TL3)

2000

Large regions (TL2)

3

2

1

Country (number of regions considered)

The already large regional economic disparities in Italy have slightly increased over the last sixteen years. In the province of Bolzano-Bozen the level of GDP per capita was two and a half times higher than in Calabria in 2016.

With a productivity growth of 0.2% per year over the period 2000-16, Bolzano-Bozen experienced the highest productivity growth among Italian regions, much below the OECD average of 1.1% in the same period. With a negative productivity growth of -1% per year in Molise, the gap with Bolzano-Bozen has widened further, especially since 2010.

Notwithstanding a small improvement in recent years, youth unemployment rate in Calabria is still among the highest in the OECD area, with over 55% of youths unemployed. Youth unemployment rates above 50% are also observed in Apulia, Campania and Sicilia, while the province of Bolzano-Bozen shows the lowest rate in the country (10% in 2017).

Productivity trends, most and least dynamic regions, 2000-16

Youth unemployment rate, 15-24 years old, 2007-17

GDP per worker in USD PPP

100 000

95 000

90 000

85 000 Italy

80 000

75 000

70 000

65 000

60 000

2000

2005

2010

Bolzano-Bozen: highest productivity in 2016 and highest productivity growth (+0.2% average annual growth over 2000-16)

Molise: lowest productivity growth (-1% annually)

2016

rate (%) 70 60 50 40 30 20 10 0

2007

OECD

2012

Highest rate Calabria 55.7%

Italy 34.7%

Lowest rate Province of BolzanoBozen 10%

2017

Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); Italy is composed of 21 large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010).

Updated the 5th of March 2019

Differences in well-being across regions

top 20%

Aosta Valley

Top region

Bottom region

Bolzano-Bozen Liguria

Bolzano-Bozen

Lazio

Regions Trento

Basilicata

Aosta Valley

Lombardy Liguria

Campania

Veneto

Trento

middle 60%

Ranking of OECD regions (1 to 402)

bottom 20%

Sicily Calabria

Molise Lombardy

Calabria

Calabria

Campania

Calabria

Sicily

Apulia

Safety

Jobs

Community Environment Income

Life

Access to

Satisfaction services

Housing

Health

Civic

Education

Engagement

Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

Italy has the largest regional disparities among OECD countries in terms of unemployment rate and the second largest disparities in terms of safety (homicide rates). While Aosta Valley ranks among the safest 1% of OECD regions, Sicily ranks among the bottom 10%. With respect to other OECD regions, all Italian regions have improved their relative ranking in health (life expectancy) since 2000 and are now in the top 20% healthiest OECD regions, with the exception of Campania and Sicily.

The top performing Italian regions fare better than the OECD median region in most well-being indicators, except for unemployment rate, air pollution, self-evaluation of life satisfaction and the share of labour force with at least a secondary degree.

Safe ty Homicide Rate (per 100 000 people), 2016

Jobs Employment rate 15 to 64 years old (%), 2017 Unemployment rate 15 to 64 years old (%), 2017

Com m unity Perceived social netw ork support (%), 2013

Environm ent Level of air pollution in PM 2.5 (?g/m?), 2015

Incom e Disposable income per capita (in USD PPP), 2016

Life Satisfaction Lif e satisf action (scale f rom 0 to 10), 2013

Access to services Households w ith broadband access (%), 2017

Hous ing Rooms per person, 2016

He alth Life Expectancy at birth (years), 2016 Age adjusted mortality rate (per 1 000 people), 2016

Civic engagem ent Voters in last national election (%), 2017 or lastest year

Education Labour force w ith at least upper secondary education (%), 2017

Country OECD median

Average

region

1.4 57.8 11.5 88.6 19.2 19 552 6.3 79.0 1.7 83.4 6.6 72.9 67.5

1.3 67.7 5.5 91.4 12.4 17 695 6.8 78.0 1.8 80.4 8.1 70.9 81.7

Italian regions Top 20% Bottom 20%

0.4

4.5

70.3

41.0

6.3

21.7

93.0

84.3

12.5

37.4

24 027

13 928

6.7

5.8

80.8

70.0

1.9

1.6

84.0

82.1

6.2

7.3

78.3

62.9

73.2

60.2

Source: OECD Regional Database. Visualisation: . Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Italy is composed of 21 large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019

Metropolitan areas in the national economy

UItnaitlyed States

OECD population is concentrated in cities* Percentage of population in cities, 2016

OECD average

people outside cities

45%

35% 60.7 million people - 55% live in cities

5% 15%

people in cities with population above 500 000

people in cities with population between 250 000 and 500 000

people in cities with population between 50 000 and 250 000

people outside cities

people in cities with population between 50 000 and 250 000

30% 1.2 billion people - 70% live in cities

6%

9%

people in cities with population between 250 000 and 500 000

people in cities

55%

with population above 500 000

Source: OECD Metropolitan Database. Number of cities: 84 in Italy and 1 138 in the OECD.

In Italy, 55% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 35% compared to 55% in the OECD area.

Importance of metropolitan areas Cities above 500 000 people, 2016

Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2001-16

%

Italy

80

70

63%

60

50

40%

40

30

20

10

0

% of national GDP

OECD average

58% 37%

55% 35%

% of national employment

% of national population

Italian metropolitan areas

%

0.1%

0.1

per year

Rest of the country

0.0

-0.1

-0.2

-0.3

-0.2%

per year

Metropolitan areas in Italy account for 40% of national GDP. Between 2001 and 2016, the GDP was growing in metropolitan areas whereas it was shrinking in the rest of the country.

Milan, the richest metropolitan area of Italy in terms of GDP per capita, is close to the top 20% of the 327 OECD metropolitan areas. Four Italian metropolitan areas are among the poorest 20% metropolitan areas.

In terms of PM 2.5 levels, Padua, Milan and Venice are among the 10% most polluted OECD metropolitan areas.

OECD Metropolitan areas ranking Cities above 500 000 people

GDP per capita, 2016

USD PPP 100 000 80 000 60 000 40 000 20 000 0

Top 20% richest metropolitan areas

Bottom 20% poorest metropolitan areas

Air pollution (PM2.5), 2017

Lev el of air pollution in PM 2.5 (?g/m?) 30

20

10

0

Top 20% leastpolluted metropolitan areas

Bottom 20% most polluted metropolitan areas

Source: OECD Metropolitan Database. Note: number of metropolitan areas with a population of over 500 000: 13 in Italy compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: .

Updated the 5th of March 2019

Subnational government finance

Subnational government expenditure by function As a share of total subnational government expenditure, 2016

Italy

00 OECD average

Health 48%

11

18% Health

General public services 14%

22

14% General public services

Other 14%

33

15% Other

Economic affairs 13% Education 6%

Social protection 0.3%

44

14% Economic affairs

55

25% Education

66

14% Social protection

Subnational expenditure per capita:

USD 5 473 77 USD 6 817

Subnational government expenditure amounts to USD 5 473 per capita in Italy compared to an OECD average of USD 6 817. In Italy, this is equivalent to 28.9% of total public expenditure and to 14.3% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. Health and general public services are the two largest spending items for subnational governments in Italy: together they represent 62% of subnational expenditure compared to 32% in the OECD area.

In Italy, 52.6% of total public investment was carried out by subnational governments compared to an OECD average of 56.9%.

Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita 1 400

Italy

OECD average

1 200

1 000

800

Total public investment

USD 824 per capita

600

2.1% of GDP

400

Subnational government

investment

200

USD 433 per capita

0

52.6% of public invest.

Total public investment USD 1 278 per capita 3.0% of GDP

Subnational government investment USD 727 per capita 56.9% of public invest.

Source: OECD Subnational Government Structure and Finance Database. Note: The function `Other' includes housing and community amenities, recreation, culture and religion; environment; public order and safety.

OECD Regions and Cities at a Glance 2018

The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country.

Consult this publication on line:

Updated the 5th of March 2019

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