The Bank of Italy’s latest economic update estimates that Sicily’s output grew 0.6% in the first half of 2026 compared with a year earlier, below Italy’s 0.9% increase. Services and construction supported growth, while employment remained broadly unchanged and rising energy costs constrained household purchasing power and business margins. Bank lending accelerated, driven mainly by stronger demand rather than easier credit conditions.
Public works, supported by the National Recovery and Resilience Plan, more than offset a slight decline in private construction, while industrial growth remained modest. Goods exports rose 7.4% at current prices, driven by petroleum products, but exports excluding petroleum fell 15.9%. The unemployment rate declined to 10.3% from 13.7% a year earlier, reflecting fewer people actively seeking work rather than employment growth. Household disposable income increased 0.7% in real terms and consumption rose 0.9%. Inflation reached 4.6% in September, driven mainly by housing, utility and transport costs.
Bank credit to the private nonfinancial sector increased 4.0% year over year in June, up from 3.4% at the end of 2025. Business lending expanded 4.6%, but growth was confined to medium and large firms, while lending to smaller businesses continued to contract. Household borrowing increased through both mortgages and consumer credit, with the latter growing faster. Credit supply conditions were broadly unchanged for businesses and mortgages, although banks expected a slight tightening in consumer credit during the second half of 2026. The annualized rate of new nonperforming loans fell to 1.5% from 1.7% at the end of 2025, reflecting improvement among businesses. Household and business bank deposits grew 4.5% year over year in June.