Bank of Italy says Abruzzo economy grew 0.4 percent in 2025 as exports and lending recovered

The Bank of Italy has published its annual report on Abruzzo, estimating that regional economic activity grew by 0.4 percent in 2025, broadly in line with Italy as a whole. Growth was driven mainly by a strong expansion in construction and a smaller increase in services, while the labor market continued to improve and credit conditions strengthened. Loans to firms returned to growth and household lending accelerated, while credit quality remained broadly favorable. The report points to a marked rebound in exports, up 6.9 percent in 2025 and faster than the national average, led by pharmaceuticals, which reached about one fifth of total regional exports. It also highlights Abruzzo's high exposure to the automotive supply chain, with 5.5 percent of private non-financial sector value added linked directly or indirectly to automotive demand, against 1.7 percent nationally. Employment rose by 0.9 percent, real household income continued to grow at a slower pace, and firms' financial conditions remained solid, with high liquidity levels and nearly 80 percent of surveyed companies reporting a profit. In finance, corporate bank lending increased by 1.0 percent at year-end after contracting in 2024, mainly because of larger firms, while lending to households rose 3.1 percent, supported by stronger mortgages and still-positive consumer credit. On public finance, regional capital spending remained well above the average for ordinary-statute regions and payments under the National Recovery and Resilience Plan exceeded half of the funding allocated to Abruzzo. For early 2026, the report describes weaker business and household sentiment after the start of the Gulf conflict in March, although bank lending to firms continued to grow in the first quarter.