The Bank of Italy presented its annual regional report, “The Economy of Lazio”, describing a continued expansion in 2024. Its quarterly regional indicator (ITER) rose 0.9% in real terms, above 2023 (0.5%) and slightly above Italy’s 0.7%, with growth supported by foreign demand and public spending while consumption and private investment were weaker. Industry posted a modest recovery after the prior year’s decline, helped by exports, especially pharmaceuticals. Construction remained positive due to public works despite the sharp scaling-back of Superbonus-related incentives, and services continued to grow at a moderate pace; tourist presences increased again, albeit less strongly than in the immediate post-pandemic rebound. Corporate financial conditions were described as positive, with many firms reporting profits and overall liquidity still high, which restrained demand for bank loans even as interest rates fell. Employment rose 1.7% and unemployment fell to 6.3%; purchasing power increased 1.4% as inflation eased, consumer credit expanded, and mortgage lending recovered after interest rates dropped by more than one percentage point. Bank credit to the non-financial private sector declined slightly as stronger household lending only partly offset weaker lending to firms; lending standards stayed cautious for corporate and consumer credit while appearing more relaxed for residential mortgages. Corporate loan quality deteriorated, driven by higher defaults in construction and the automotive supply chain, while household risk remained stable; deposits resumed growth, mainly in savings, and securities held in custody increased, notably government bonds and mutual fund units. For decentralised public finance, total primary spending by Lazio’s territorial entities increased, with fixed investment rising at more than double the pace of other ordinary statute regions, mainly linked to Jubilee 2025 public works and the National Recovery and Resilience Plan. By end-May 2025, EUR 13.3bn had been allocated under the plan for interventions in Lazio, with over EUR 5bn tendered for goods, services and public works; despite a large share of awards by end-December, half of planned construction sites had not started, above the national average, and per-capita investment spending remained well below the ordinary statute regions’ average. The report also notes that Lazio’s 2023 value added was still 2.4 percentage points below its 2007 peak and that long-run labour productivity declined, reflecting weaker physical capital and total factor productivity, alongside disadvantages in institutional quality and innovation. Early-2025 indicators point to continued growth in the first quarter, tourism flows were rising but below Jubilee-related expectations, and geopolitical tensions and announced US tariff increases were weighing on firms’ outlook, with around one tenth of regional exports going to the United States and more than 40% of those exports in pharmaceuticals, which are currently exempt from new tariffs.

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