The Bank of Italy has published its annual report on the Piedmont economy, showing that regional output grew by 0.4 percent in 2025, a modest pace that was weaker than in the previous year and slightly below the North and Italy overall. The report also points to a weaker near-term outlook. Its regional surveys indicate stagnant revenues in industry and services in 2026 and a decline in construction activity, with conditions worsening again in March after the deterioration in the macroeconomic backdrop linked to the Persian Gulf conflict and related raw material supply problems. The report says industrial production showed only a limited recovery in 2025 and exports rose, but by less than international demand. Weakness in the automotive sector remained a major drag because Piedmont is more exposed to that supply chain than the national average, including in parts of services, while aerospace stood out as a growing and more innovation-intensive sector. Services slowed markedly, especially trade, though information and communication technology remained more resilient and tourism increased strongly. In the labor market, employment growth slowed, industrial employment fell, recourse to wage support schemes increased and the unemployment rate rose to the Italian average. Household income and consumption rose only modestly in real terms. In finance, bank lending to firms broadly stabilized but continued to fall in industry, construction and among smaller businesses, while bond funding increased, mainly for larger service companies. Household mortgages and home sales increased, deposits resumed growth and debt-servicing capacity remained generally strong. On local public finances, territorial entity investment slowed sharply in 2025 after strong growth in the previous two years supported by the National Recovery and Resilience Plan. As of February 2026, payments made under the plan amounted to a little more than 60 percent of the roughly EUR 10 billion allocated to projects to be carried out in Piedmont or for private entities based in the region, while health-related implementation was uneven across projects.
Bank of Italy2026-06-16
Bank of Italy reports Piedmont economy grew 0.4 percent in 2025 and points to 2026 stagnation
The Bank of Italy said Piedmont's economy grew by 0.4 percent in 2025, with weaker momentum than a year earlier. It expects stagnant industry and services revenues in 2026 and lower construction activity, while automotive weakness, slower employment growth and only modest gains in household income and consumption continue to weigh on the region. Bank lending to firms was broadly flat, mortgages rose and PNRR-funded public investment implementation remained uneven.