Bank of Italy reports Lazio economy grew 0.6 percent in 2025 as PNRR and Jubilee works supported activity

The Bank of Italy published its annual report on Lazio’s 2025 economy, showing moderate growth despite elevated geopolitical uncertainty. Real output rose 0.6 percent, slightly above the national average but below the 2024 pace, supported mainly by private consumption, investment and goods exports. Public works linked to the National Recovery and Resilience Plan and the 2025 Jubilee were a key driver of activity. Growth was broad across sectors except agriculture. Pharmaceutical exports rose 17.7 percent and made up half of regional goods exports, construction value added increased 3.6 percent on public investment, and services expanded modestly even as foreign tourist presences rose 27.8 percent, with more than one-third of that increase linked to Jubilee visitors. Employment increased 0.6 percent and the unemployment rate fell to 5.5 percent, while real household disposable income rose 1.0 percent as 1.7 percent inflation constrained purchasing power. Bank lending to the private nonfinancial sector increased 5.4 percent at end-2025, driven by an 8.2 percent rise in business lending concentrated in larger firms and 2.9 percent growth in household borrowing, while the credit deterioration rate declined to 1.1 percent. Local government primary spending rose as capital expenditure increased 25.3 percent, largely because of PNRR and Jubilee-related investment, and local debt fell although it remained high by national standards. The report says conditions worsened in the first months of 2026. Industrial and service firms expected stable turnover and lower investment spending, while activity was set to remain supported mainly by PNRR and Jubilee projects still under way.