Navarre AC

• Navarre AC has just over 683,000 inhabitants, 1.4% of the total population, and is the region with the third smallest population in Spain.
• The region’s GDP stands at 26.6 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 39,076 euros, its GDP per capita is the third highest in the country and it is 20.0% higher than the national average (10.0% below the average in the euro area).
• Navarre AC’s productive sectors are mainly notable for the high relative importance of the manufacturing industry, which accounts for 24.4% of its GDP, the highest percentage of all regions (national average of 11.9%): the region contributes 3.4% 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 (24.1% vs. 28.1%), and especially industry-related services (20.6% vs. 29.7%).
• Navarre AC is clearly export-oriented. Exports of goods, which account for 38.0% of regional GDP, one of the highest percentages of all regions (24.1% in Spain), totalled 10.1 billion euros in 2024, 2.6% of the national total: exports of motor vehicles account for almost 37.5% of the total, far ahead of food (17.5%) – especially fruit and pulses – industrial machinery (9.0%) and electrical appliances (8.2%).

In 2025, Navarre AC’s economy is performing slightly more modestly than on average in Spain: we estimate GDP growth of 2.7% (2.9% in Spain). Growth is being constrained by weak exports and industrial activity, two key drivers for the region. Domestic tourism, consumption and employment are on a better footing, although they are still lagging behind the national average.

In 2026, our forecasts point to a slowdown in Navarre AC’s GDP growth to 2.0%, a rate similar to that of Spain (2.1%). Industrial activity and foreign demand will be hampered by the sluggishness of our European partners and rising tariffs. However, financing conditions will remain favourable, which will support household spending and investment; additional drivers will be wages rising more quickly than prices (in the former case) and a faster roll-out of NGEU funds (in the latter).

The performance of Navarre AC’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 2024 (2.4% in Spain) and a 1.4% year-on-year rise in October 2025 (vs. 2.4%); job creation in transportation, professional activities and construction has been outstanding over the last year, but there have been heavy job losses in the energy sector. In any event, Navarre AC has one of the lowest regional unemployment rates: in Q3 2025 it stood at 7.3% (10.5% average nationwide).

Household spending in Navarre AC has yet to recover completely, after the sharp cumulative fall seen in 2020-2022. Thus, the volume of sales of retail and consumer goods recorded a notable increase of 3.0% in 2024 (2.1% in Spain), but has slowed down considerably in 2025 (1.6% year-on-year to October vs. 3.9%), so sales remain far lower than they were in 2019 (–3.2%). There has been a modest increase in passenger car registrations: 2.0% in 2024 (vs. national average of 7.1%) and 6.7% year-on-year in January-October 2025 (vs. 14.9%), so they remain 32.6% below pre-pandemic levels (vs. –9.4%).

After the sharp downturn recorded in 2023, Navarre AC’s industrial production recovered last year, with growth of 2.4%, much higher than the national average (0.7%). However, this positive trend was halted in 2025, with one of the worst records in the country up to September – with figures unadjusted for seasonal and calendar effects (–1.8% year-on-year vs. 1.1% across Spain), hampered by consumer durables and capital goods.

The sluggish performance of Europe’s main destinations is having a negative effect on Navarre AC’s exports of goods: in 2024, they recorded a 0.6% decline (0.2% on average nationwide), while in the first nine months of 2025, the downturn deepened (–4.8% year-on-year vs. 0.5%), as a result of the sharp fall in sales of capital goods (especially electrical appliances) and, above all, motor vehicles, whereas foodstuffs (meat, fruit and pulses) performed strongly.