Sardinia's Demographic Decline Hampers Regional Economy, Report Shows

A Confindustria Sardegna study highlights that Sardinia's falling birth rate – 0.85 children per woman, the lowest in Italy – is curbing the island's economic potential. In 2025 the region recorded a modest 0.7% rise in GDP and a 1% increase in employment, yet the employment rate remains at 58.2%, below the national average of 62.5%.

Export activity is weakening sharply, with an 11.4% drop in 2025 and a further 21.1% decline in the first quarter of 2026. The report estimates about €1.5 billion of productive capacity remains unused because of demographic constraints and island‑specific costs, such as transport delays that cost €70‑85 million annually.

Youth entrepreneurship has also faltered, with a 26.6% reduction in businesses led by young people between 2014 and 2024, and only 23.7% of Sardinians aged 25‑49 hold a university degree, compared with the national 28% average. Net family wealth stands at €251 billion, but per‑capita financial assets are roughly half the Italian average.