The Bank of Italy has published an economic update estimating that Calabria’s real output rose 1.3% in the first half of 2026 compared with a year earlier, slightly outpacing southern Italy and the country overall. Services and construction supported activity in the first nine months, while industrial growth moderated. Bank lending strengthened, although credit to small businesses continued to contract. Rising energy costs linked to the Middle East conflict squeezed business margins and household purchasing power.
Construction benefited from public works, with local government investment spending increasing 11% in the first half, supported by projects under Italy’s National Recovery and Resilience Plan. Employment rose 1.6% over the same period, driven by self-employment, and unemployment fell to 9.1%. Labor force participation remained well below the national average. Household disposable income increased 3% in nominal terms but only 0.7% after inflation. Annual consumer price inflation reached 4.9% in September, up from 2.1% in December 2025, with transport, housing and utility costs accounting for more than half of the increase in prices.
Bank lending to the private nonfinancial sector grew 3.9% year on year in June, accelerating from 3.1% in December 2025, mainly supported by stronger demand. Lending standards eased slightly for businesses and consumer credit but remained broadly unchanged for mortgages. Loans to medium and large firms increased 8.4%, while lending to small businesses fell 3.1%. Household consumer credit grew 5.8% and housing mortgages increased 3.3%. Credit quality improved for businesses and remained broadly stable for households. The overall annualized rate of new impaired loans declined to 1.7% from 1.9% at the end of 2025.