Navarre has been awarded top rating for its level of economic development, according to the Foundation of the Federation of Spanish Savings Banks, FUNCAS.

The region stands out for its high level of population growth, above the Spanish average over the last five years. This has made it one of the main parameters for measuring the economic dynamism of the last few years, in the words of the economist Pablo Alcaide, of the Regional Economy Office of FUNCAS.

The study is published in edition number 191 of FUNCAS's economic information journal and was presented in Pamplona last June 21st in a ceremony attended by the Vice-President of the Government of Navarre and Regional Treasury Minister, Francisco Iribarren.
In Navarre the population grew by 9.14% from 2000 to 2005, compared with 8.91% in Spain overall. This increase was only slightly held back in 2005, when the population of Navarre grew by 1.49% as opposed to the average of 2.11%. This growth is largely due to the attractiveness of Navarre for workers from other countries. In 2005 foreigners accounted for 8.41% of the total population of Navarre. Despite this input, the population pyramid is rather older on average than the rest of the country. FUNCAS points out that Spanish regions need to continue to attract workers to maintain the sustainable growth of the economy.

The study also highlights the fact that Navarre is the region with the best-balanced productive structure, thanks to the high participation of industry in its GDP, and the particular feature that it still has a strong agricultural base that produces high-quality foodstuffs, a factor that also has an impact on the high quality of life of the region's inhabitants.

In terms of distribution of income among households, Public Administrations and companies in Navarre, the weight of the last-named is striking and a clear reflection of the importance of its industrial sector.

Another important point is that private consumption has a lower specific weight in the economy of Navarre, 5 points below the Spanish average (55% vs. 60%), which represents less dependence on a very changeable economic factor. It is also one of the few regions with a positive trade balance.

The only negative aspect is the relative level of prices, 4% higher than the average for Spain. However, Pablo Alcaide considers that the evolution of prices in Navarre has been controlled, and is a phenomenon that could be expected given the high rate of growth of the region's economy.

Full employment in real terms

A good indication is the excellent performance of the labour market in Navarre over the last five years. Navarre was already the region with the lowest unemployment in Spain, and over the last five years it has continued to reduce the level and maintain its status in this respect. In 2005 the unemployment rate in Navarre was 4.87% of the active population, which FUNCAS considers as full employment in real terms.