The Bank of Italy has published its annual report on the economy of the Autonomous Provinces of Trento and Bolzano for 2025, showing that both economies continued to expand at a modest pace. Real GDP rose by 0.5 percent in Trento, in line with the national figure, and by 0.6 percent in Bolzano. Growth was supported by recovering investment and a moderate rise in consumption, while weak external demand and persistent geopolitical and trade tensions weighed on activity and worsened the outlook for 2026. Manufacturing remained weak and exports fell in real terms in both provinces, with a sharper contraction in Trento. Construction, tourism-related services, business services and agriculture performed better, supported by National Recovery and Resilience Plan projects, infrastructure linked to the 2026 Winter Olympics and stronger tourist demand. Labour market conditions remained favourable, with employment rising in Trento and staying broadly stable at historically high levels in Bolzano, unemployment falling further, and household real income and consumption increasing moderately. In credit markets, the fall in lending to firms in Trento nearly stopped and credit to firms in Bolzano resumed growth as interest rates declined, household borrowing increased mainly through mortgages, deposits continued to expand and asset quality remained good, with new non-performing loan flows below the national average. The report also says territorial entities' primary spending continued to rise, driven by both capital expenditure and current spending, while PNRR projects and Olympic infrastructure works advanced. It highlights persistent gaps by gender, age and citizenship in labour market participation, pay, contract stability, entrepreneurship and access to credit, despite stronger labour market conditions than the national average.
Bank of Italy2026-06-11
Bank of Italy annual report shows Trento and Bolzano economies grew 0.5 percent and 0.6 percent in 2025
The Bank of Italy's annual report says the economies of Trento and Bolzano grew modestly in 2025, with real GDP up 0.5 percent and 0.6 percent. Weak manufacturing and exports were offset by construction, tourism and business services, while labour markets stayed strong and credit conditions improved. The report also points to rising local public spending and persistent gender, age and citizenship gaps in work, pay and access to credit.