Growth of 2.1% in the Basque economy reflects future opportunities and challenges.

The Basque economy closed the year with a growth of 2.1%, according to figures released by Eustat, the Basque Institute of Statistics. This increase reflects a slight improvement compared to previous estimates from the Basque Government, which had just days earlier revised its macroeconomic projections. Although this figure is positive, it suggests that the economy of Euskadi continues on a path of deceleration, in comparison to the rest of Spain, which is expected to grow between 3% and 3.1%. Despite the overall deceleration, the increase in employment in the autonomous community is an encouraging statistic. During the past year, there was a recorded increase of 1.8%, equivalent to the creation of approximately 17,000 new jobs. This growth in employment indicates dynamism in certain areas of the economy, although it also underscores the variability in performance across different sectors. According to Eustat, economic activity in Euskadi has behaved heterogeneously. While sectors such as commerce, transportation, hospitality, and health, education, and social services have shown performance above average, other sectors have experienced more moderate growth. This phenomenon highlights the need for stronger economic diversification in the region to mitigate the impact of sectoral fluctuations. In the last quarter of the year, the Gross Domestic Product (GDP) of Euskadi grew by 0.4% compared to the previous quarter, and by 1.9% compared to the same period the previous year. This growth, although modest, suggests that the Basque economy managed to stay in positive territory in a national and international context that presents challenges. The increase in GDP, along with the rise in employment, offers a more optimistic outlook, though it should be considered cautiously in the context of deceleration. Employment data in the last quarter also show a growth of 0.4% compared to the previous three months, indicating stability in the Basque labor market during a time of uncertainty. However, it is essential for authorities and economic actors to remain vigilant against potential changes in trends, given the global context and associated risks. The service sectors have been the main drivers of growth in Euskadi, highlighting the importance of this area in the regional economy. Hospitality and tourism, in particular, have shown a remarkable recovery, which may indicate increased demand for services and experiences from consumers. This could be further strengthened in the future by the normalization of activity following the pandemic. Another relevant point is that the 2.1% growth in Euskadi occurs within a context of broader economic adjustments. As the Spanish economy recovers at a faster pace, with growth forecasts exceeding 3%, the autonomous community will need to find ways to align its growth with national trends. Global challenges, including inflation and geopolitical tensions, pose uncertainties that could affect both GDP growth and employment in Euskadi. In this regard, it is essential for public administration and the private sector to work together to foster a favorable environment for investment and job creation. In the long term, policies promoting innovation and sustainability will be crucial to ensure balanced and resilient economic growth in Euskadi. Diversifying the economic base and developing a skilled workforce are elements that must be prioritized to ensure the region's competitiveness. In conclusion, the 2.1% increase in the Basque economy is a positive sign, although the context of deceleration generates the need for continuous vigilance. Job creation and growth in certain sectors indicate potential that must be enhanced, while effectively managing risks and seizing opportunities presented by the national and international environment.