Sicilian growth trails Italy as employment stagnates
Sicily's economy grew 0.6 percent year on year in the first half of 2026, against 0.9 percent nationally and 1.0 percent in southern Italy, the Bank of Italy estimates. Public works and services supported growth while employment remained broadly stable.
Oil masks weaker exports
Sicilian goods exports rose 7.4 percent in nominal terms in the first half of 2026, driven by petroleum exports, which increased 33.1 percent.
Non-petroleum exports fell 15.9 percent, with shipbuilding contributing heavily to the decline.
Construction hours increased 4.2 percent as public works outweighed weaker private building.
By June, National Recovery and Resilience Plan payments reached €5.7 billion, or 47 percent of allocations.
Tourist overnight stays rose 6.0 percent in the first half.
Employment increased just 0.1 percent.
Unemployment fell from 13.7 to 10.3 percent, largely reflecting fewer jobseekers rather than employment gains.
Labor force participation among people aged 15-64 declined from 55.1 to 53.2 percent.
Credit growth bypasses smaller firms
Private non-financial sector bank lending grew 4.0 percent year on year in June 2026.
Business loans rose 4.6 percent: lending to medium-sized and large firms increased 7.4 percent, while small-firm loans fell 2.6 percent.
Household borrowing from banks and finance companies grew 3.9 percent, including consumer credit growth of 5.4 percent.
New mortgage costs averaged 3.78 percent in the second quarter.
The annualized loan deterioration rate fell to 1.5 percent from 1.7 percent at end-2025.
Deposits rose 4.5 percent and securities held in custody increased 11.4 percent.
Purchasing power under pressure
Sicilian inflation reached 4.6 percent in September 2026, with transport, housing and utilities driving about two-thirds of the increase.
Real household income grew 0.7 percent in the first half, down from 1.0 percent in 2025.
Real consumption rose 0.9 percent, below Italy's 1.1 percent.
Source: L'economia della Sicilia - Update, November 2026
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