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This paper aims to predict the economic resilience to crises of territories based on local pre-existing socioeconomic characteristics. Specifically, we consider the case of Italian municipalities during the first wave of the COVID-19 pandemic, leveraging a large-scale dataset of cardholders performing transactions in Point-of-Sales. Based on a set of machine learning classifiers, we show that network-based measures and variables related to the social, economic, demographic and environmental dimensions are relevant predictors of the economic resilience of Italian municipalities to the crisis. In particular, we find accurate classification performance both in balanced and un-balanced scenarios, as well as in the case we restrict the analysis to specific geographical areas. Our analysis predicts that territories with larger income per capita, soil consumption, concentration of real estate activities and commuting network centrality in terms of closeness and Pagerank constitute the set of most affected areas, experiencing the strongest reduction of economic activities during the COVID-19 pandemic. Overall, we provide an application of an early-warning system able to provide timely evidence to policymakers about the detrimental effects generated by natural disasters and severe crisis episodes, thus contributing to optimize public decision support systems. • We quantify economic resilience of Italian municipalities through bank transaction data. • We model territories with a set of socioeconomic and network-based covariates. • Machine learning classifiers accurately predict economic resilience. • We use SHAP values to identify most relevant predictors. [ABSTRACT FROM AUTHOR]

• Two-phase training algorithm able to boost the Machine Learning accuracy. • Accurate bankruptcy prediction up to 60 months by a Machine Learning algorithm. • Integration of the Machine Learning algorithm in a DSS for policy making. • Test of the DSS on the Italian SMEs, with a focus on the COVID-19 effects. In the field of detection and prediction of company defaults and bankruptcy, significant effort has been devoted to evaluating financial ratios as predictors using statistical models and machine learning techniques. This problem becomes crucially important when financial decision-makers are provided with predictions on which to act, based on the output of prediction models. However, research has shown that such predictors are sufficiently accurate in the short-term, with the focus mainly directed towards large and medium-large companies. In contrast, in this paper, we focus on mid- and long-term bankruptcy prediction (up to 60 months) targeting small and/or medium enterprises. The key contribution of this study is a substantial improvement of the prediction accuracy in the short-term (12 months) using machine learning techniques, compared to the state-of-the-art, while also making accurate mid- and long-term predictions (measure of the area under the ROC curve of 0.88 with a 60 month prediction horizon). Extensive computational tests on the entire set of companies in Italy highlight the efficiency and accuracy of the developed method, as well as demonstrating the possibility of using it as a tool for the development of strategies and policies for entire economic systems. Considering the recent COVID-19 pandemic, we show how our method can be used as a viable tool for large-scale policy-making. [ABSTRACT FROM AUTHOR]