Vice President of the Basque Country Torres confirms the Basque Country cements "solid growth" in 2025 and forecasts stable economic and employment expansion through to 2027.

• The economy closed 2025 with 2.3% growth, 0.1 percentage points above forecasts. Domestic demand, investment, and a record-breaking labour market drove this expansion despite global uncertainty, while industry signals recovery. 

• The unemployment rate is set to fall to 6.4% this year and drop below 6% in 2027, with employment projected to grow by approximately 1.1% this year, positioning the labour market as a central pillar of growth.

The Basque economy secured 2.3% growth in 2025, exceeding initial forecasts and confirming 'solid, stable, and sustained growth supported by balanced internal foundations,' stated Vice Premier and Minister of Economy, Labour, and Employment Mikel Torres today during the presentation of the 2025 economic assessment and forecasts for 2026 and 2027.

Speaking at a press conference in Bilbao alongside Deputy Minister of Economy Iñaki Ruiz and Director of Economy Marga Andrés, the Deputy Premier noted that "the forecasts are positive." GDP is projected to grow by 1.9% in 2026 and 1.6% in 2027, aligning with the progressive moderation of growth in advanced economies.

During the presentation, Torres observed that, despite an international environment defined by geopolitical and trade uncertainty, "the global economy continues to advance, supported by strong employment, solid investment, and a gradual easing of monetary and fiscal policies." However, he warned that this growth "is not uniform" and affects major economies unevenly.

Against this backdrop, the Basque Country has outperformed expectations. Basque GDP grew by 0.5% in the fourth quarter and 2.4% year-on-year, primarily fuelled by domestic demand. "Consumption and, especially, investment have driven growth throughout the year," stated the Vice President. Final consumption rose by 2.5% and investment by 3.8%, bolstering the economy's future growth potential. The Basque Country closed 2025 with GDP growth of 2.3%, 0.1 percentage points above the initial forecast. This confirms a "solid, stable, and sustained" trend fuelled by household consumption, investment, and a record-breaking labour market.

Torres acknowledged, however, that the external sector continued to dampen activity due to the weakness of key trading partners and heightened international tensions. "Industry is our primary concern today," he stated, noting that growth reached just 0.3% in 2025. Nevertheless, he expressed "reasonable optimism for 2026," forecasting a "gradual recovery of the industrial sector" where "signs are already beginning to appear."

Record labour market and unemployment at historic lows

The Deputy Premier underscored the strength of the Basque labour market, which closed 2025 with 1,036,804 people registered with Social Security, the highest figure on record. "Never before have so many people been working in the Basque Country," he noted. Employment grew by 1.2%, reflecting a balanced distribution between men and women and marking a historic milestone: for the first time, the number of women registered with Social Security surpassed 500,000.

Unemployment remains at historically low levels, standing at 107,434 jobless people in December with a rate close to the Eurozone average. Torres emphasised the contribution of the foreign-born population to the labour market: "Almost 55% of new Social Security contributors in 2025 were of foreign origin, which demonstrates their decisive contribution to job growth in the Basque Country.” He also underlined the importance of the new competencies taken on by his department in managing work permits.

Employment will continue to increase, albeit at a more moderate pace, enabling the unemployment rate to fall to 6.4% in 2026 and approach 6% in 2027. According to the Deputy Premier, this trend "reflects the structural improvement of the Basque labour market, as well as moderate growth in the active population.” The Minister explained that "the retirement of several generations will be offset by the arrival of workers from outside the Basque Country, ensuring the maintenance of a stable workforce.”

Beyond GDP

Finally, Mikel Torres underscored social indicators, stressing that "not everything is about economic figures" and that social justice is "a cornerstone of all policies of the Department of Economy, Labour, and Employment.” Crucially, the latest data confirms that the Basque Country maintains the lowest risk of poverty in Spain, with just 14.8% of the population in vulnerable situations. The region has also improved income distribution and ranks among the regions with the highest quality of life, innovation, and human development, both nationally and in Europe.

"The Basque Country is not only growing economically but is also advancing in social cohesion, well-being, and innovative capacity, reinforcing its position as one of the most competitive and balanced regions on the continent," concluded Mikel Torres.