The economy will grow 2.2% in the Basque Country this year and 1.9% next year

The Department of Economy, Labour and Employment has updated themacroeconomic situation for the period 2026-2027  after learning the results for the second quarter and reviewing the assumptions regarding the international environment, prices and financial conditions.

According to the new forecast, the economy of the Basque Country will grow by 2.2%this year, three tenths higher than forecast in January , and will growby 1.9% in 2027, two tenths higher. The main reason for the revision is that growth in the second quarter was two tenths higher than forecast three months ago, as well as an update of forecasts in the main economies of the area.

The Vice-President and Counsellor for Economy, Labour and Employment, Mikel Torres, has stated that "the latest data showhigher growth  % than those collected in January. "However, Torres has explained thatthecurrent economic scenario will be conditioned by the international situation, energy cost, inflation and interest rates .

In this context, domestic demand will continue to be the main support for the growth of the Basque economy, supporting household consumption through job creation, wage increases and the ability of households to save, while business investment will continue to grow, albeit more slowly, due to the tightening of financing conditions and the completion of various projects linked to European funds.

Employment forecasts

According to the latest affiliation data, in the Basque Country in September the number of social security contributors increased by 10,336, to 1,041,618 members, and in the same month more than 88,000 contracts were made, 10.3% more than in the same period of the previous year.

The forecast is that 22,000full-time jobs will be created in the Basque Country between 2026 and 2027. The increase in the labour force, mainly the population of foreign origin, will bring the unemployment rate to 6.8% in 2026, while in 2027 it will fall to 6.4%.

Evolution by sector

In terms of supply, services will be the sector that contributes the most to the growth of the Basque economy in 2026 and 2027.

Construction will also maintain positive rates, but its evolution will slow. Industry will experience limited growth in 2026, conditioned by the situation outside the Basque Country and energy costs, and will gradually recover in 2027, depending on the evolution of European markets.

The external sector will contribute negatively to economic growth in 2026 as exports will grow little and imports will increase. By 2027, a progressive improvement is expected, but in this case too the scenario will be conditioned by energy costs, the state of the European economy and the export capacity of Basque companies.