The Bank of Italy published an update on Abruzzo’s economy estimating that economic activity grew 1.1% year over year in the first half of 2026, compared with 0.9% nationally. Domestic demand and exports supported the expansion, alongside stronger employment. Rising energy costs squeezed business margins and household purchasing power, while lending to small businesses continued to contract despite growth in overall credit.
Exports increased 8.3% in nominal terms in the first half, driven by pharmaceuticals. Excluding that sector, exports were broadly unchanged. Public works financed by the National Recovery and Resilience Plan supported construction, while residential building activity remained weak. Employment rose 2.4%, and unemployment fell to 4.8% from 7.2% a year earlier. Household disposable income and consumption both increased 1.2% in real terms. However, regional inflation reached 4.3% in September, with transport, housing and utility costs accounting for more than half of the increase. Higher energy prices also reduced profit margins for almost 70% of surveyed firms.
Bank lending to the private nonfinancial sector grew 2.0% year over year in June. Household bank lending increased 3.1%, but business lending slowed to 0.4%, including a 4.8% contraction in loans to small firms. Credit demand increased across businesses and households, while lending standards remained broadly unchanged. Provisional August figures indicated faster growth in overall lending, at 2.9%, and business lending, at 2.2%. The gross share of nonperforming loans declined to 4.0% in June from 4.3% at the end of 2025.