by Maximiliano Crocamo
Friuli Venezia Giulia’s economy recorded modest growth in the first half of 2025, according to the Bank of Italy’s latest regional report. The region’s gross domestic product rose 0.4 percent compared with the same period in 2024, slightly below the national growth rate of 0.6 percent.
Sectoral performance was uneven. Manufacturing stabilized after three years of decline, services remained weak, and construction continued to be the most dynamic sector, with activity up 29 percent. Public investment, supported by Italy’s National Recovery and Resilience Plan (PNRR) and regional and municipal funding, played a key role, with 92 percent of tenders awarded, totaling 640 million euros.
External demand was largely stagnant. Exports grew 6.6 percent, but over one-fifth of the increase came from shipbuilding; excluding this, growth was just 1 percent, with volumes slightly down. Mechanical engineering, food production, and shipbuilding performed well, while electronics and metallurgy lagged.
Tourism remained a bright spot, with visitor numbers up 8.7 percent, driven by both Italian and international travelers.
Port traffic in Trieste and Monfalcone rose modestly, by 0.8 percent, thanks to increased bulk and roll-on/roll-off shipments to Turkey and Egypt. Container traffic, however, fell 16.8 percent after international shipping routes were reorganized toward Koper and Rijeka.
Business confidence and access to credit improved. Bank lending to companies returned to growth (+1.4 percent), supported by lower interest rates, which fell to 3.9 percent, while credit quality remained high.
The labor market was stable. Self-employment declined slightly, offset by a 3.6 percent increase in private-sector salaried positions. Household incomes grew 2 percent in nominal terms, but purchasing power remained flat as inflation offset gains, leaving consumer spending essentially unchanged (-0.1 percent).
The real estate market saw strong activity, with residential sales up 12.8 percent and home prices rising 4.5 percent. Mortgage lending surged 41 percent in the first six months, boosted in part by refinancing. Household savings rose modestly (+1.5 percent in deposits), while investments in financial instruments continued to grow, with securities held in custody up 11.2 percent, reflecting positive stock market trends.
