Mapping Socio-Economic Disparities in Italy: A Statistical Classification of Municipalities for Regional Development

In Italy, the National Recovery and Resilience Plan (PNRR) was introduced in 2021 to mitigate the pandemic crisis’s effects and support the country’s recovery through strategic investments. To evaluate the long-term impact of these policies, it is essential to have a detailed snapshot of the socio-economic conditions of Italian municipalities at the beginning of fund distribution. This study presents a socio-economic classification of Italian municipalities (excluding regional and provincial capitals) based on Principal Component Analysis (PCA) and Cluster Analysis (CA). Using data from ISTAT and other official sources, we analyze the structural conditions of municipalities as of December 31, 2022. The classification allowed for the identification of three macro areas: Metropolitan Areas, Fragile Peripheral Areas, and Productive Areas, which were further detailed into a second-level classification of eight groups. Our findings provide a detailed territorial classification that highlights both dynamic and vulnerable areas, offering a valuable tool for policymakers. This classification supports regional and national interventions, particularly in assessing the impact of PNRR resource allocations and cohesion funds, ultimately contributing to more targeted and effective development policies.