The Bank of Italy published an economic update estimating that Sardinia’s output grew 0.7% in the first half of 2026 compared with the same period of 2025, below Italy’s 0.9% growth. Tourism and public construction supported activity, but higher energy prices increased business costs and constrained household purchasing power. Business lending continued to contract, while credit quality weakened slightly.
Tourist overnight stays increased 4.6% in the first eight months of 2026. Public investment, partly supported by the National Recovery and Resilience Plan, sustained construction activity amid persistent weakness in private demand. Investment plans remained subdued across industry and services. Rising energy costs contributed to regional inflation reaching 4.4% in September, limiting growth in real household disposable income and consumption to 0.7% each in the first half. Around 70% of surveyed businesses expected profit margins to narrow in 2026.
Bank lending to the private nonfinancial sector increased 0.9% year on year in June, as household borrowing growth of 2.6% offset a 1.4% contraction in business loans. Provisional August figures showed overall lending declining 0.4%, with business lending down 4.6%. The rate at which performing loans became impaired rose to 1.3% in the four quarters ending in June, from 1.1% at the end of 2025, driven by businesses, particularly construction and services firms. However, the gross nonperforming loan ratio remained broadly stable at 3.0%.