Spain | Navarre Economic Outlook 2024

GDP could increase by 2.5% in 2024 and 2.8% in 2025. Next year, Navarra's GDP could exceed pre-crisis GDP by 7%. Unemployment may fall to 7,4% in 2025.

Key points

• Key points:
• In 2024, Navarrese GDP growth can reach 2.5%. This advance is almost three times higher than that of the Eurozone (0.7%), although it is below that expected for Spain as a whole (2.9%). Employment is growing less than in the rest of the Spanish economy, particularly outside the Pamplona area. This is partly explained by the lower weight of service activities.
• Growth could accelerate in 2025 to 2.8%, despite the moderation expected in Spain (2.4%). The recovery of European demand and lower input costs are the main factors that would support this scenario. Navarrese companies will be among the most benefited from the normalization of activity in the Eurozone, given the orientation of their exports of goods and their weight in the regional economy.
• The tourism sector continues to gain market share and has room to grow. The fall in inflation and interest rates will boost private consumption. The supply of housing has been growing with the increase in demand.
• If these forecasts are met, in 2025 the regional GDP would exceed the 2019 level by 7 pp, and the GDP per capita would exceed the level of 1.4 percentage points. In addition, the unemployment rate could fall to 7.4% on average in 2025 and 19,000 new jobs could be created in 2024 and 2025 as a whole.

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