The Bank of Italy has published its economic update for Valle d’Aosta, estimating that real output grew 0.6% year on year in the first half of 2026, compared with 0.9% across northern Italy. Regional growth accelerated slightly from the previous year, but employment declined and rising inflation constrained household purchasing power. Business bank lending contracted sharply, while lending to households continued to expand.
Growth extended across industry, services and construction, with public works supported by projects under Italy’s National Recovery and Resilience Plan. Exports nevertheless fell 5.7% in nominal terms in the first half, despite recovering in the second quarter. Employment declined 0.6% over the first half, while real household disposable income increased just 0.5%. Annual inflation reached 3.2% in September, its highest level since 2023, driven by transport and housing costs, including energy. Surveyed businesses remained cautious about energy prices and geopolitical and trade uncertainty.
Bank lending to businesses fell 15.5% year on year in June, reversing growth of 4.5% in December 2025. The contraction was concentrated among medium and large companies in energy and manufacturing. Weaker credit demand contributed to the decline, while manufacturing figures also reflected transfers of borrowing to foreign banks outside the reporting perimeter. Lending by banks and financial companies to households rose 2.8% year on year in June, supported by mortgages and consumer credit. The average annualized rate at which performing loans became impaired declined to 0.5% over the four quarters ending in June, from 0.7% in December 2025, with the improvement attributable to businesses.