According to a report from the Bank of Italy, entitled ‘The economy of Puglia in 2006’, the region’s economy is starting to recover after four years of struggle.

According to a survey conducted by the bank involving 332 companies, including 20 that were launched in 2006, improvements are partly attributable to higher sales of ‘Made in Italy’ goods such as leather, footwear and furniture.

The bank’s director general, Fabrizio Saccomanni, said that growth was apparent across the country, including the south, but that the southern regions were often more affected by environmental and security problems, and by weak infrastructures. He added that the region’s manufacturing sector must undergo restructuring in order to facilitate growth. Despite this, he said that industrial turnover increased by 5% in 2006 and also stressed the importance of new entrepreneurial endeavours.

However, the outlook remains cautious as the region is particularly vulnerable to exports from the emerging markets. Mr Saccomanni pointed out that, while exports from southern Italy grew 6.8% in 2006, central Italy registered a 13.4% increase, the north east saw a 9.6% rise and exports in the north east grew 8.5%.