Basilicata economy stagnates in 2025 amid industrial decline
Banca d'Italia's 2025 annual report on Basilicata's economy reveals stagnation, primarily due to a negative performance in the industrial sector. Economic activity in the region contracted by 0.2 percent at constant prices, lagging behind the Mezzogiorno and national averages.
Industrial headwinds hit Basilicata economy
In 2025, Basilicata's economy stagnated, primarily affected by the negative performance of its industrial sector.
According to Banca d'Italia's quarterly regional economic indicator (ITER), economic activity decreased by 0.2 percent at constant prices, contrasting with slight growth in the Mezzogiorno (0.7 percent) and the national average (0.5 percent).
This conjunctural evolution was largely influenced by a decline in output during the first half of the year.
The industrial sector's value added decreased, notably due to a further contraction in car production at the Melfi plant, impacting its supply chain.
Oil and natural gas extractions also reduced.
Industrial investments increased, partly due to lower credit costs, though 2026 forecasts suggest a worsening capital accumulation trend.
Construction activity grew, particularly in public works, supported by the National Recovery and Resilience Plan (PNRR).
The real estate market remained favorable, with increased transactions and prices.
The tertiary sector saw limited expansion, only partially benefiting from strengthened tourism demand.
Agricultural activity stagnated, with selling prices and input costs continuing to rise.
Uneven recovery across provinces
Basilicata's post-pandemic economic growth lagged national and Mezzogiorno averages, marked by significant disparities between its two provinces.
From 2019 to 2023, the region's value added increased by 2.5 percent.
Matera province led this growth with a 5.1 percent expansion, driven mainly by services and tourism.
Potenza province, however, grew by only 1.4 percent, hindered by industrial difficulties, particularly in the automotive sector.
Despite Matera's stronger recent performance, Potenza's per capita value added remained 17 percent higher.
The region's overall value added benefited from a rising employment rate and modest labor productivity.
However, a significant population decline and aging, especially in Potenza, negatively impacted labor supply and economic potential.
Stagnation, but resilience persists
Basilicata's economy faces significant challenges, marked by overall stagnation and a struggling industrial sector.
Despite this, the report highlights a surprising resilience in business profitability and liquidity, suggesting potential for future investment.
Persistent regional disparities, with Matera showing stronger growth than Potenza, demand targeted policy interventions for balanced development.