Bank of Italy has published its annual report on Sicily's economy, showing that regional activity grew by 0.6 percent in 2025, slightly faster than Italy as a whole but at a slower pace than in the previous year. Growth lost momentum in the second half of the year, with construction and a recovery in credit supporting activity while services slowed. Industry expanded only slightly, but non-oil exports increased, led by shipbuilding, agrifood and electronics, while trade in petroleum products fell sharply. Construction rose by 1.5 percent, with public works more than offsetting weaker private building activity, and housing transactions and prices both increased. Employment continued to grow, up 0.9 percent, and net hiring in the private non-agricultural sector remained positive, supported mainly by permanent contracts, although female employment, employment among workers aged 25 to 34 and graduate employment declined. Household income and consumption rose in real terms, while credit to the Sicilian economy strengthened. Loans to businesses returned to growth after more than two years of decline, but only for larger firms, and household lending accelerated on stronger mortgage demand. Credit quality improved slightly for both firms and households. In decentralized public finance, regional spending continued to expand, driven mainly by capital expenditure linked to cohesion policies and the National Recovery and Resilience Plan, and the region completed its exit from deficit and posted a surplus, although municipal financial imbalances remained more widespread than the national average.

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