Spain | Aragon Economic Outlook. 2025

Summary

Aragon's GDP growth in 2024 could have reached 3.0%, and will continue with an increase of 2.2% in 2025 and 1.8% in 2026. The dynamism is supported by domestic demand, favoured by the fall in inflation and interest rates and the increase in wages and employment.

Key points

• Key points:
• The increase in 2024 exceeds the average growth between 1995 and 2019 (1.8%) and is almost four times higher than that of the EMU (0.8%), although it is lower than that of Spain as a whole (3.2%). Employment dynamics were concentrated in the capital, Zaragoza, and the urban areas of Huesca and Teruel.
• Activity was positively influenced by the contribution of public consumption, which increased more than in other regions, and by the boost from private consumption and foreign tourism. However, the decline in exports to the euro area, the slowdown in industrial production after two years of strong growth and the slowdown in domestic tourism explain why growth is slightly below average.
• The unemployment rate could fall to 8.0% on average in 2026 and 17 500 new jobs could be created in the two-year period 2025-2026.
• Progress is needed on policies to encourage investment, create certainty and address human capital shortages. The industrial sector faces a high degree of uncertainty related to rising energy costs, structural problems, stagnating European demand and possible US tariff increases.
• The lack of investment, particularly in the housing market, is a bottleneck to growth, although the intensity of the housing problem is less pressing in Asturias than in other regions.

Geographies

Topics

Tags