Navarre AC

• Navarre has just under 690,000 inhabitants, 1.4% of the total population, and is the third least populated region in Spain.
• The region’s GDP stands at 26.619 billion euros, equivalent to 1.7% of Spanish GDP, so it is the region that makes the fourth smallest contribution to the national total.
• At 39,096 euros, its GDP per capita is the third highest in the country and it is almost 20.0% higher than the national average (9.9% below the average in the euro area).
• Navarre’s productive sectors are mainly notable for the high relative importance of the manufacturing industry, which makes up 25.7% of its GDP, the highest percentage of all the regions (national average of 11.9%): the region contributes 3.6% of the country’s manufacturing GVA and its motor vehicle, agri-food, renewable energy and pharmaceutical industries are especially prominent. However, services make up a far smaller percentage than on average, in terms of trade, transportation, hotels and restaurants, and leisure (24.2% vs. 28.1%), and especially industry-related services (20.8% vs. 30.2%).
• Navarre is clearly export-oriented. Exports of goods, which account for 38.0% of regional GDP – the highest percentage among all regions (24.1% in Spain) – totalled 9.522 billion euros in 2025, 2.5% of the national total: motor vehicle industry products account for 34.9% of Navarre’s exports, far exceeding the 23.8% share of capital goods (mainly industrial machinery and electrical appliances) and 20.1% of food (fruit and vegetables).

Navarre’s economy performed slightly below average in 2025: we estimate GDP growth of 2.6% (2.8% in Spain). Growth was constrained by weak exports and industrial activity, two key drivers for the region. Domestic tourism, consumption and employment were on a better footing (albeit below the national average).

For 2026, our forecasts point to a slowdown in Navarre’s GDP growth to 2.1%, the same rate as Spain as a whole. Activity will be constrained by the sluggishness of our European partners, rising energy costs and the restructuring of the motor vehicle industry, which is focusing on the transition to electric vehicles and sustainable mobility. However, the agri-food and renewable energy sectors will continue to perform strongly, and NGEU funds will support investment. Other positive factors include high levels of income and productivity and the strength of a diversified, highly export-oriented economy.

The performance of Navarre’s labour market is somewhat more muted than on average in Spain, with a 1.6% rise in the number of registered workers affiliated to Social Security in 2025 (2.3% in Spain) and a 2.0% year-on-year rise in May 2026 (vs. 2.5%). In any event, Navarre’s unemployment rate is below the national average: in Q1 2026 it stood at 9.1% (10.8% average nationwide).

Household spending in Navarre has yet to recover completely, after the sharp cumulative fall seen in 2020-2022. Thus, the volume of sales of retail and consumer goods slowed down considerably in 2025 (1.3% vs. 3.9% in Spain), especially in the first few months of this year (0.1% year-on-year up to April vs. 2.9%), making it the only region that has not returned to 2019 levels (–3.6% vs. 9.5%). Meanwhile, after rising by 8.8% in 2025, far below the national average (12.9%), passenger car registrations picked up sharply in 2026 and grew by 24.4% year-on-year up to May (vs. 5.8%), although they remain far below pre-pandemic levels (–24.4% vs. –6.4%).

In 2025, Navarre’s industrial production reversed the upward trend that had begun the previous year and recorded the sharpest decline of all the regions (–2.6% vs. 1.3% across Spain), hampered by consumer durables and capital goods. This downward trend is set to continue into 2026. Up to April, based on figures that have not been adjusted for seasonal and calendar effects, activity fell by 1.8% year-on-year (vs. 0.5% in Spain).

The sluggish performance of Europe’s main destinations is having a negative impact on Navarre’s exports of goods: in 2025, they recorded a fall of 5.8% (0.7% on average nationwide) as a result of the sharp decline in sales of capital goods (particularly electrical appliances) and, above all, in the motor vehicle industry, contrasting with the buoyant performance of the food sector (meat and processed foods). The decline has slowed this year (–3.6% year-on-year up to April vs. 2.0%).