Southern Italy's economy outpaces national growth, experts call for a development pact

The latest SVIMEZ forecast shows the Mezzogiorno growing by 0.8% in 2026, slightly ahead of the national average of 0.7%. The increase is credited to the National Recovery and Resilience Plan (PNRR) and cohesion policy, which have helped the South tap a larger share of Italy’s economic potential. SVIMEZ secretary‑general Daniela Fumarola says the positive trend must be turned into lasting development by integrating cohesion funds, the Development and Cohesion Fund and the unified ZES, and by financing a new social pact that links government and social partners to boost investment, productivity, training and good jobs.

Analysts also note that since 2021 the South’s GDP growth has exceeded the national average and, on a per‑capita basis, outperforms both Italy and the EU, especially Spain. However, the pace has slowed recently and the region has not yet undergone a structural transformation. Perceptions of the South as a lagging area persist, influencing individual choices and investment decisions, and prompting calls for targeted policy action rather than short‑term charitable measures.