The Bank of Italy has published its annual report on Basilicata’s economy for 2025, showing that regional activity stagnated and fell 0.2 percent in real terms, underperforming both southern Italy and the national average. The main drag came from industry, especially the automotive sector, although employment continued to rise, household income increased modestly in real terms and bank credit to the private sector returned to growth. The sharpest weakness came from the Melfi car plant, where output fell 47.2 percent from 2024, weighing on suppliers and contributing to a 17.8 percent drop in regional exports. Oil and gas extraction also declined, while services grew only marginally. Construction was a relative support, helped by public works linked to the National Recovery and Resilience Plan, and tourism strengthened, with arrivals up 12.4 percent and overnight stays up 10.0 percent. Employment rose 1.6 percent, but hours worked slowed and use of wage supplementation instruments more than tripled, mainly in the auto sector. Bank lending to firms and households increased 1.2 percent after two years of contraction, though credit quality deteriorated for businesses, especially in manufacturing. Local government spending rose, particularly capital spending and healthcare costs, and EUR 2.5 billion of PNRR resources had been allocated to projects in the region, with payments equal to 40 percent of assigned amounts.
Bank of Italy2026-06-18
Bank of Italy annual report shows Basilicata economy stagnated in 2025 as automotive weakness pushed activity down 0.2 percent
The Bank of Italy’s annual report says Basilicata’s economy stagnated in 2025, with activity falling 0.2 percent as automotive weakness hit industry. Exports dropped 17.8 percent, while construction and tourism were brighter spots. Employment and bank lending improved, but corporate credit quality worsened, mainly in manufacturing.