Trento and Bolzano grow modestly as exports weaken
Real output grew an estimated 0.7 percent in Trento and 1.0 percent in Bolzano in the first half of 2026, according to the Bank of Italy. Tourism and public investment supported activity, while exports and private investment remained weak.
Tourism supports uneven growth
First-half 2026 growth compared with 0.9 percent nationally.
Real exports fell 1.4 percent in both provinces; nominal exports declined 1.0 percent in Trento and were unchanged in Bolzano.
Tourist overnight stays increased 4.4 and 3.7 percent, respectively.
Public works benefited from the National Recovery and Resilience Plan and the 2026 Winter Olympics, while firms maintained plans to reduce investment.
Employment fell 0.9 percent in Trento and was broadly stable in Bolzano; unemployment stood at 2.4 and 1.5 percent.
Real household disposable income rose 0.8 percent in both provinces.
September inflation reached 3.8 percent in Trento and 4.1 percent in Bolzano, with transport, housing and utilities driving price increases.
Business credit follows different paths
At June 2026, business lending fell 0.9 percent year on year in Trento but grew 3.0 percent in Bolzano; small-firm lending contracted in both.
Household loans rose 3.0 and 2.0 percent, respectively.
Business liquidity borrowing rates increased about 20 basis points to approximately 4.7 and 4.6 percent.
New mortgage APRs were 3.85 and 3.66 percent.
Credit deterioration rates stood at 0.8 and 0.7 percent; gross non-performing loan shares fell to 2.1 and 2.6 percent.
Household deposits and securities holdings increased in both provinces.
Expansion without investment momentum
The Bank of Italy reports growth supported by tourism, consumption and public investment rather than private capital spending.
Rising inflation limited households' purchasing-power gains.
Credit quality remained high, but smaller firms continued to face declining lending in both provinces.