The Bank of Italy has published its annual report on the economy of Friuli Venezia Giulia, describing continued but slower growth in 2025 despite higher United States tariffs and geopolitical uncertainty. Regional gross domestic product is estimated to have risen by 0.7 percent in real terms, slightly above the national average, supported mainly by foreign demand and public spending, especially investment, while household consumption increased only modestly. The report also points to a weaker near-term outlook because the conflict involving the United States, Israel and Iran raises energy and raw material costs and increases the risk of slower international trade and softer consumer spending. Industry returned to growth after three years of decline, with value added estimated to have increased by 1.9 percent in real terms, helped by exports and stronger investment linked to digital and energy transition. Construction expanded for a fifth consecutive year, with value added up 2.6 percent, supported by public works and housing-related regeneration projects, while property transactions and prices both rose. Services continued to grow at a slower pace, tourism nights increased 6.5 percent, and cargo handled at the ports of Trieste and Monfalcone rose 1.8 percent, although container traffic fell sharply. Employment and total hours worked were broadly stable, household purchasing power improved slightly for a second straight year but remained below 2019 levels, and bank lending to the nonfinancial private sector resumed growth in the second half of 2025 as business and household borrowing strengthened and credit quality remained high. Financial savings of households and firms increased further, and territorial entities’ primary spending rose 10.5 percent, with capital spending up 20.8 percent and investment growth linked both to local projects and to National Recovery and Resilience Plan projects. The report includes early 2026 signals showing continued tourism growth in the first quarter, a further easing in wage support use and a modest strengthening in lending growth to 1.5 percent by March 2026. At the same time, it says the regional outlook remains highly uncertain because of geopolitical tensions and the energy shock affecting an open economy with energy-intensive specializations.
Bank of Italy2026-06-10
Bank of Italy reports Friuli Venezia Giulia economy grew 0.7 percent in 2025 with credit returning to growth and public investment accelerating
The Bank of Italy said Friuli Venezia Giulia’s economy grew 0.7 percent in 2025, supported by exports and public investment, while household consumption remained subdued. Industry and construction strengthened, bank lending returned to growth and credit quality stayed solid. The 2026 outlook is weaker because of geopolitical tensions, higher energy costs and slower trade.