Abruzzo economy grew 0.4 percent in 2025, led by construction
Banca d'Italia's 2025 annual report on Abruzzo's economy highlights 0.4 percent growth, driven by construction and services. The report notes improved business confidence and employment, despite external headwinds.
Construction and exports drive 2025 growth
Abruzzo's economic activity grew by 0.4 percent in 2025, in line with the national trend, primarily driven by strong expansion in construction and moderate growth in services.
Business confidence in manufacturing improved throughout 2025, though it was interrupted by the Persian Gulf conflict in early 2026.
The automotive sector experienced a reduced decline in commercial vehicle production.
Exports rebounded significantly, exceeding the national average, largely due to robust sales of pharmaceutical products, which constituted about one-fifth of regional exports.
Public works funded by the National Recovery and Resilience Plan (PNRR) supported the construction sector, while private building activity decreased due to changes in fiscal incentives.
Residential property sales slowed, but prices continued to climb in urban areas.
The services sector saw a slight increase, bolstered by household spending and a strong rise in tourism.
Firms maintained favorable economic and financial conditions, with high liquidity.
Labor market stabilizes, household finances mixed
Employment growth continued in Abruzzo, albeit slower, with permanent contracts driving private sector job creation.
Wage integration schemes remained intense in 2025, and contractual wage increases aligned with the national average.
Real wages, however, declined between 2008 and 2023.
Household real incomes grew in 2025, albeit slower, and consumption expanded moderately.
Household confidence deteriorated from March due to the Persian Gulf conflict.
Overall well-being improved significantly between 2018 and 2024, surpassing the national average, mainly due to environmental quality, despite challenges in the economy and labor market.
Innovation lags, public finances stabilize
Abruzzo's innovation capacity, though improving, still lags behind comparable EU regions, suggesting current policies lack sufficient impact.
While local debt has decreased, the regional budget deficit remains a critical fiscal challenge.
This highlights an urgent need for more targeted investments and structural reforms to truly boost competitiveness.