Campania economy grew 0.9% in 2025, credit recovers

In 2025, Campania's economic activity continued to expand, albeit at a moderate pace, with the Banca d'Italia's quarterly regional economic indicator (ITER) showing 0.9 percent growth.

This rate surpassed the Italian and Southern Italy averages, intensifying in the year's final quarters.

The expansion was driven by improvements in services and, to a lesser extent, industry, while the construction sector also grew, supported by the National Recovery and Resilience Plan (PNRR) and local public works.

Industrial firms saw a return to positive turnover balances, though automotive production declined due to reduced demand.

Tourism benefited from increased foreign visitors, boosting airport and port traffic.

The positive economic trend reflected in the labor market, with employment growing more than the national average, particularly in services and industry.

The unemployment rate fell by nearly two percentage points, and permanent employment positions increased.

Households in Campania saw real disposable income rise in 2025, supported by employment and wages, despite a slight inflation uptick.

However, long-term real private sector wages declined more than the national average, and economic fragility remains widespread.

Loans to the non-financial private sector recovered, with corporate lending rebounding and household loans accelerating.

Interest rates on loans decreased, and credit quality indicators, while moderately worsening for manufacturing firms, remained historically contained.

Local government spending strengthened, particularly investments, aided by the PNRR and cohesion policies, leading to a continued fall in local debt.