Regions and Cities at a Glance 2018 – ITALY http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016

Top 20 % richest over bottom 20% poorest regions GDP per capita in USD PPP 2016 2000 Ratio 4 55 000 Small regions Large regions (TL3) (TL2) 50 000 Highest region 45 000 Bolzano-Bozen 3 40 000 51 567 USD 35 000 Italy 30 000 33 537 USD 2 25 000 20 000 Lowest region Calabria 15 000 1 10 000 20 323 USD 2000 2005 2010 2016

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 rate (%) Bolzano-Bozen: highest 100 000 70 productivity in 2016 and Highest rate 95 000 60 highest productivity Calabria 90 000 growth (+0.2% average 50 55.7% 85 000 annual growth over Italy 40 Italy 80 000 2000-16) 30 34.7% 75 000 OECD Molise: lowest 20 Lowest rate 70 000 productivity growth (-1% Province of Bolzano- 10 65 000 annually) Bozen 60 000 0 10% 2000 2005 2010 2016 2007 2012 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 region Bottom region Lazio Regions

Aosta Trento Valley Bolzano-Bozen

Bolzano-Bozen Liguria top top 20%

(1 to 402) to (1 Lombardy Veneto Liguria Basilicata Campania Aosta

Valley Trento middle middle 60%

Calabria Sicily Calabria Campania Ranking Ranking OECD of regions Apulia

Molise Sicily Calabria Lombardy

bottom bottom 20% Calabria

Safety Jobs Community Environment Income Life Access to Housing Health Civic Education Satisfaction services 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.

Country OECD median Italian regions Average region Top 20% Bottom 20% Safety Homicide Rate (per 100 000 people), 2016 1.4 1.3 0.4 4.5 Jobs Employment rate 15 to 64 years old (%), 2017 57.8 67.7 70.3 41.0 Unemployment rate 15 to 64 years old (%), 2017 11.5 5.5 6.3 21.7 Community Perceived social netw ork support (%), 2013 88.6 91.4 93.0 84.3 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 19.2 12.4 12.5 37.4 Income Disposable income per capita (in USD PPP), 2016 19 552 17 695 24 027 13 928 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 6.3 6.8 6.7 5.8 Access to services Households w ith broadband access (%), 2017 79.0 78.0 80.8 70.0 Housing Rooms per person, 2016 1.7 1.8 1.9 1.6 Health Life Expectancy at birth (years), 2016 83.4 80.4 84.0 82.1 Age adjusted mortality rate (per 1 000 people), 2016 6.6 8.1 6.2 7.3 Civic engagement Voters in last national election (%), 2017 or lastest year 72.9 70.9 78.3 62.9 Education Labour force w ith at least upper secondary education (%), 2017 67.5 81.7 73.2 60.2 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. 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

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

UnitedItaly States OECD average

people in cities people with population outside cities above 500 000 35% 30% people in cities people 60.7 million 1.2 billion 45% 55% with population outside cities people - 55% people - 70% above 500 000 live in cities live in cities people in cities with people in cities with 6% population between population between 5% 250 000 and 500 000 50 000 and 250 000 9% 15% people in cities with people in cities with population population between between 250 000 and 500 000 50 000 and 250 000

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 Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2016 Cities above 500 000 people, 2001-16

% Italy OECD average Italian metropolitan areas Rest of the country 80 % 70 63% 0.1% 58% 60 55% 0.1 per year 50 40% 37% 0.0 40 35% 30 -0.1 20 -0.2 10 0 -0.3 -0.2% % of national % of national % of national per year GDP employment population

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

USD PPP 100 000 80 000 GDP per 60 000 40 000 capita, 2016 20 000 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas 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: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

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% 44 14% Economic affairs

Education 6% 55 25% Education

Social protection 0.3% 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 Italy OECD average 1 400

1 200 Total public investment 1 000 USD 1 278 per capita 3.0% of GDP 800 Total public investment USD 824 per capita 600 2.1% of GDP Subnational government 400 Subnational government investment investment 200 USD 727 per capita USD 433 per capita 56.9% of public invest. 0 52.6% 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: https://oe.cd/pub/2n9

Updated the 5th of March 2019