Overview
- The Basque Government announced on Wednesday that it raised its 2027 GDP forecast from 1.6% to 1.7% while keeping 2026 at 1.9%.
- Officials also upgraded the employment outlook to 1.1% for 2026 and 1.0% for 2027 from earlier, lower estimates.
- The government said the revision rests mainly on higher household consumption and a stronger services sector, while industry and exports show weaker momentum.
- Authorities warned that risks to the outlook include US tariff measures under President Donald Trump, softer demand from France and Germany, and a fragile truce in the Middle East.
- The revised path still places Euskadi above an expected eurozone growth near 1% and could lift local job markets if external demand holds, but exporters and manufacturers remain the key vulnerabilities to watch.