Bank of Italy reports Sardinia economy grew 0.7 percent in 2025 amid weaker exports and slower job growth

The Bank of Italy has published its annual report on Sardinia's economy, saying regional output grew 0.7 percent in 2025 at constant prices, still expanding but more slowly than in the previous year. Growth was supported by moderate household consumption, continued investment led by public works linked partly to implementation of the National Recovery and Resilience Plan, and a further increase in services activity. External demand weakened in the second half of the year as international trade tensions intensified. Industry remained weak, with lower foreign sales of refined petroleum products, metals and food products, and the dairy sector showing particular exposure to United States trade policy through its direct and indirect sales to that market. Construction expanded by 2.1 percent as public works offset a sharp fall in private residential building, while tourism stayed strong, with overnight stays up 11.5 percent and foreign visitors driving most of the increase. Employment rose 1.0 percent but lost momentum after the summer, labour-force participation rose faster than employment and the unemployment rate increased to 9.3 percent, while nominal household income and purchasing power both improved. Bank lending to the non-financial private sector edged up as faster household borrowing offset a 2.3 percent fall in credit to firms, asset quality remained historically high despite a rise in firm deterioration rates, deposits and securities holdings increased, and local public spending rose with PNRR support while the consolidated debt of territorial entities fell more sharply than at the national level.