According to Laboral Kutxa, the economy will grow by 1.8% in Euskadi and 1.9% in Navarra

The Basque economy will grow by 1.8% in 2025, a tenth less than this year. service sector like a great engine and ballasted by the weakness of the industrial sectorwhich, according to Laboral Kutxa, is mainly faced by the automotive and capital goods sectors.

According to estimates by Laboral Kutxa, Navarra’s economy will also show an increase, higher than that of the BAC, which is estimated at 2.5% in 2024 and 1.9% in 2025.

The Director of the Department of Laboral Kutxa Studies, Joseba Madariagaand the person responsible for Business Development, Ibon Urgoitihave presented in Bilbao a report on the prospects of the Basque economy for next year, which reflects employment growth in Euskadi of almost one and a half points in 2024 and 2025 and a drop in the unemployment rate to 7.2%.

According to the entity, the Basque economy is developing better than that of the eurozone, but at lower rates than those of the Spanish state, whose GDP is estimated to grow by 2.2% in 2025 and by 3% this year.

The weakness of the industrial sector

The entity, according to Madariaga, expects the Basque industry, which has “a low starting point”, to grow by around 2% next year, which will also increase investments.

In the growth expected for 2025, the service sector will be the “big driver”, which, according to Laboral Kutxa’s forecasts, will grow clearly above 2%.

Euskadi ends this year with an increase in employment of 1.6% and an unemployment rate of 7.8%. Next year, employment will grow by 1.4% and the unemployment rate will be reduced to 7.2%.

In Navarre, employment will grow by 2% this year and 1.5% next year and the unemployment rate will be set at 7.9% this year and 7.5% next year, the entity said.