The Bank of Italy has published an economic update estimating that Veneto’s output grew 0.7% in the first half of 2026 from a year earlier, slightly below national growth. Manufacturing and services expanded, but international uncertainty constrained investment and rising energy costs weighed on firms and household purchasing power. Lending recovered unevenly, with credit to small businesses continuing to contract.
Manufacturing production increased 3.3% in the first half, partly reflecting precautionary inventory accumulation. Exports rose 4.1% in nominal terms, but growth would have been only 1.2% excluding the delivery of a large ship to the United States. Construction began weakening as projects under Italy’s National Recovery and Resilience Plan approached completion. Industrial investment plans continued to point to lower spending in 2026, while firms generally expected investment to remain unchanged in 2027. Employment fell 0.6% in the first half, contrasting with national growth. Household purchasing power increased just 0.3% over that period, while regional inflation subsequently reached 4.4% in September, driven by transport and household energy costs.
The annual contraction in business lending narrowed to 0.5% in June from 2.9% in December 2025. Provisional August figures showed a return to growth of 0.6% after more than three years of decline. The recovery remained uneven by company size: lending to medium and large firms rose 0.3% in June, while loans to small businesses fell 4.9%. Household borrowing from banks and finance companies increased 3.9%, supported mainly by mortgages. Credit quality remained historically strong, with the gross nonperforming loan ratio at 2.5% in June, although the rate of new nonperforming business loans edged higher.