Aragon Sustains Solid Economic Growth in Q3 2025 Amid Global Uncertainties
Aragon's economy grew steadily in Q3 2025, driven by strong consumption, investment, and a solid labor market despite global uncertainties.
- • Aragon's GDP grew 2.6% year-on-year in Q3 2025, slightly below Spain's 2.8%.
- • Private consumption rose 3.7%, supported by improved employment and incomes.
- • Investment surged with construction up 11.9% and machinery spending up 13.6%.
- • Unemployment in Aragon stood at 8.5%, below the national average of 10.5%.
- • Inflation reached 2.9% in Q3, driven mainly by energy prices.
- • Aragon received over €4.2 billion from the EU Next Generation program, aiding key projects.
Key details
The economy of Aragon maintained a steady yet moderated growth pace in the third quarter of 2025, with its Gross Domestic Product (GDP) rising by 0.4% from the previous quarter and posting a 2.6% annual increase. Although this is slightly below the national average growth of 2.8%, it reflects the region's resilience in a challenging global economic environment influenced by geopolitical and trade uncertainties.
According to the regional government's latest Quarterly Bulletin, private consumption was a key growth driver, up 3.7% year-on-year, bolstered by improved employment and higher disposable income. Investment also surged significantly, with construction activity jumping 11.9% and machinery and equipment investment rising 13.6%, underscoring a vigorous investment cycle. Sector analysis showed manufacturing growth of 3.8% and construction's 7% annual increase, both outperforming national trends, while services and agriculture experienced slower growth and decline respectively.
The labor market in Aragon remained favorable with employment increasing by 1.8% annually and the unemployment rate at 8.5%, which is notably below the national average of 10.5%. Inflation accelerated to 2.9% in the third quarter, influenced predominantly by energy prices, while core inflation stood at a more moderate 2.4%.
Despite persistent external risks such as eurozone economic deceleration and political uncertainties in France, the regional government raised its 2025 growth forecast to 2.9%, with expectations of 2.0% growth in 2026, supported by the Independent Authority for Fiscal Responsibility (AIReF). Notably, Aragon has benefitted from over €4.2 billion from the European Union's Next Generation program, which supports industrial, energy, and circular economy projects, aiding the region's economic dynamism.
Globally, the OECD projects a 3.2% growth rate in 2025 moderating to 2.9% in 2026, with a recovery anticipated by 2027. However, global growth outlooks are tempered by elevated trade barriers, geopolitical tensions, and inflation challenges. Despite these headwinds, partial indicators for Q4 suggest continued economic expansion in both Aragon and Spain.
In summary, Aragon has demonstrated robust economic performance in Q3 2025 amid a complex global backdrop, supported by strong domestic demand, investment, and a healthy labor market, with positive growth forecasts underpinned by EU funding and regional government optimism.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
