Bank of Italy: Lazio is growing faster than Italia as a whole, but exports are slowing and the Jubilee’s impact on tourism is waning
In the first half of 2026, Lazio outperformed the national average thanks to public works and consumer spending, whilst exports and tourist numbers showed signs of a decline.
In the first half of 2026, economic activity in Lazio continued to expand, despite persistent international tensions and rising energy prices. The Bank of Italy’s quarterly regional economic indicator (ITER) shows a 1 per cent increase in output compared with the same period last year, a figure slightly above the national average. Activity levels in the region were underpinned by spending on public works and consumer spending; external demand contracted. These figures emerge from the Bank of Italia’s regular November report on the economy of Lazio.
Industrial activity proved to be positive, despite the fall in exports
In industry in the strict sense, the assessments of turnover trends recorded in the Bank of Italia’s survey were predominantly positive, particularly for larger firms. However, exports fell (-6.8 per cent in value; +4.5 per cent in Italia), reflecting the decline in foreign demand in the aerospace and pharmaceutical sectors (-6.5 per cent); the latter having recorded strong growth the previous year, driven by expectations of tighter US tariffs.
Growth also in the construction sector, driven by public works
In the construction sector, the rise in output was driven by the continuation of public works, particularly those linked to the PNRR and the remaining Jubilee-related projects. Hours worked rose by 1.0 per cent, in contrast to a decline at national level. In the first half of the year, local authorities’ expenditure on public works rose by around a quarter compared with the same period in 2025; this increase was driven by local councils, particularly Rome City Council.
The service sector has also performed well, despite lower tourist numbers following the Jubilee
Business activity has also expanded in the services sector. A survey by the Bank of Italia revealed an increase in sales for two-thirds of businesses. In the tourism sector, following the significant boost provided by events linked to the 2025 Catholic Church Jubilee, overnight stays in the Metropolitan City of Rome, the capital, fell (-4.0 per cent); the decline affected overnight stays in non-hotel accommodation, whilst there was an increase in hotels, particularly those in the higher categories. Spending by foreign tourists also fell (by around -3.0 per cent), returning to the levels of previous years.
The economic and financial conditions of businesses remain favourable overall
According to the Bank of Italia’s survey, over 90 per cent of companies expect to end 2026 in profit or breaking even, a higher proportion than that recorded in the previous year. However, the trend in profitability appears to be affected by rising energy prices: for over two-thirds of firms, the cost of purchasing goods and services has risen or will rise by the end of the year, and just over half report a reduction in profit margins. The financial liquidity index remains at historically high levels and has risen slightly compared with the end of 2025.
