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Milan's economy is forecast to grow faster in 2026, driven by an industrial rebound, strong services and the impact of hosting the Winter Olympics, according to Assolombarda. GDP growth is projected at 1.7 percent, up from 0.7 percent in 2025. The Games are expected to generate EUR 2.5 billion in production and over EUR 1 billion in value added locally. While tourism and investment are set to benefit, rising real estate costs remain a concern for residents amid continued urban transformation.
Milan's economy is projected to record stronger growth in 2026, supported by an industrial recovery, resilient services activity and the impact of co-hosting the Winter Olympic Games, according to a new study by Assolombarda, the region's main business association. Advertisement
The report estimates that gross domestic product in Milan, Italy's financial hub, will expand by 1.7 percent in 2026, compared with growth of 0.7 percent in 2025. The acceleration is linked to improved industrial output, continued strength in services, and the direct and indirect effects of hosting the Winter Olympic Games.
Assolombarda's analysis shows that the Games alone are expected to generate around EUR 2.5 billion in total production across the Milan metropolitan area. This is estimated to translate into approximately EUR 1.045 billion in value added for the local economy, reflecting gains across construction, hospitality, transport and business services.
Assolombarda President Alvise Biffi indicated that Milan is currently in a favourable economic phase, with GDP returning to a solid growth path. He also pointed out that large international events are reinforcing the city's global profile, while tourism continues to expand at a steady pace. According to him, the Winter Games are acting as a strong catalyst, enhancing Milan's visibility abroad and speeding up ongoing urban transformation.
The city has already seen a prolonged real estate upswing since hosting Expo 2015, a trend supported by tax incentives aimed at attracting high-net-worth individuals from overseas. At the same time, rising property prices and living costs have triggered concerns among residents, with some locals arguing that affordability pressures are pushing them out of the city.
Milan's mayor, Giuseppe Sala, has said that the Olympics are drawing even greater international media attention than the Expo did. He noted that the city has welcomed a large number of foreign visitors and suggested that the global reach of the Games, which are among the most widely followed in history, is likely to have lasting effects beyond the event period.
Public spending directly linked to the Games in Milan amounts to EUR 735 million. Of this, around EUR 379 million is allocated to event-related and modernisation investments, while EUR 356 million is earmarked for organisational and operational costs. The city will host close to 90 indoor ice events, including the opening ceremony at the San Siro stadium.
In addition, local spending by visitors, athletes and staff connected to the Olympics is expected to reach about EUR 1 billion, providing a further lift to businesses across hospitality, retail and transport.
Source Reuters
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