The Bank of Italy has published its annual report on Umbria’s economy, describing a year of modest expansion in 2025 after a stronger performance in the previous year. Regional activity grew by about 0.5 per cent, broadly in line with Italy, with public investment linked to National Recovery and Resilience Plan projects continuing to support demand while industrial activity and services remained weak and exports fell slightly. The report also notes that the outlook for the current year has worsened amid heightened geopolitical and trade tensions, including the conflict involving the United States, Israel and Iran. Sector data show agriculture rose slightly and industry was broadly flat, with manufacturing still weighed down by the automotive supply chain while textiles remained resilient. Construction continued to expand, supported by National Recovery and Resilience Plan spending and post-earthquake reconstruction, and tourism strengthened further, with overnight stays up 8.5 per cent to almost 8 million and foreign visitors providing much of the increase. Employment continued to grow, though more slowly, and the employment rate rose to 69.1 per cent, while wages kept increasing but still showed a longer-term loss of purchasing power relative to Italy. Household disposable income and consumption both increased, but inflation was slightly higher. In banking, branch rationalisation continued and digital payments expanded, the contraction in credit to the economy gradually eased and had stopped by end-2025, household lending picked up on stronger mortgage lending, business lending kept falling mainly for riskier firms, and asset quality remained high despite a slight deterioration in services and construction. Local government primary spending also increased, supported by capital spending tied to cohesion policy and the National Recovery and Resilience Plan, while healthcare costs rose modestly and the region’s already negative balance of interregional patient mobility worsened further.
Bank of Italy2026-06-24
Bank of Italy reports slower 2025 growth in Umbria with public investment offsetting weak industry and exports
The Bank of Italy’s annual report says Umbria’s economy grew modestly in 2025, by about 0.5 per cent, with public investment offsetting weak industry, flat services and lower exports. Employment, household income and tourism increased, while the fall in credit to the economy ended by year-end as household lending strengthened but business lending continued to decline. The report says the outlook for the current year has worsened because of rising geopolitical and trade tensions.