Molise economy stationary in 2025, activity reduced by 0.1 percent
The Banca d'Italia's annual report on the economy of Molise for 2025 indicates a largely stationary performance. Activity in the region decreased by 0.1 percent, contrasting with growth in Southern Italy and the national average.
Stagnation and geopolitical headwinds
In 2025, Molise's economy remained largely stationary, with activity reducing by 0.1 percent, contrasting with growth in Southern Italy and nationally.
Domestic demand was constrained by weak consumption and stagnant productive investments, influenced by geopolitical and commercial tensions.
Public investments, partly fueled by the National Recovery and Resilience Plan (PNRR), continued to expand, but exports declined.
Early 2026 saw further deterioration due to national and international conditions, including increased risks from raw material supply linked to the US, Israel, and Iran conflict.
Local adverse weather and landslides in late March and early April 2026 also caused temporary production halts.
The industrial sector, particularly automotive, experienced weakness, though some Molise-based industrial firms reported revenue recovery.
Construction activity grew, supported by public works, while private services like commerce and tourism showed signs of deceleration.
Credit quality concerns amid public spending growth
Bank credit to the non-financial private sector stabilized, with a slower decline in business loans and a recovery in household lending.
However, credit quality deteriorated, particularly in the productive sector, affecting a limited number of firms.
Bank branches continued to decrease, while digital tool usage increased.
In decentralized public finance, territorial public entity spending grew in 2025, driven by capital investments, predominantly by municipalities.
These investments significantly contributed to the digitalization of municipal services.
Non-financial revenues collectively decreased.
The regional deficit improved in 2024 but remained high per capita.
Agriculture, forestry, and fishing sectors also saw a 2.8 percent value-added growth.
A fragile recovery in a vulnerable region
The Banca d'Italia report reveals a Molise economy grappling with persistent stagnation and external shocks.
While public investment offers some hope, the region's reliance on external factors and its struggle with private consumption and credit quality present significant challenges.
Sustained recovery will require deeper structural reforms to foster resilience and broad-based growth.