In 2023, Sardinia's economy showed signs of slowing. According to estimates based on the Bank of Italy's quarterly indicator of the regional economy (ITER), the island's GDP grew by 0.7% at constant prices, a figure that reflects the general trend of the South.
The limited economic growth was mainly influenced by the slowdown in the internal components of demand. Household consumption and investment fell , while weak international trade led to a contraction in foreign demand for regional production. However, a positive element was the significant contribution made by the progressive execution of the works linked to the National Recovery and Resilience Plan (PNRR) .
Inflation remained high in 2023, continuing to erode the purchasing power of Sardinian families . But, during the year, there was a slight reduction in inflation due to the reduction in the prices of energy goods. Furthermore, the increase in interest rates , adopted to moderate inflation, has led to an increase in the cost of credit .
Unlike previous cycles of restrictive monetary policy, Sardinia's production sector faced the rise in interest rates with a more solid financial structure. This was possible thanks to a lower level of debt, greater profitability and the availability of abundant liquid reserves.
