The Chartered Community of Navarre has reached the AA- rating, the highest grade an autonomous community can aspire to, as it stands two notches above its sovereign country. Additionally, S&P has assigned a “stable” outlook to this rating, based on expectations of balanced budgets and a gradual reduction in public debt over the coming years.
Regarding public debt, the rating agency highlights Navarre’s strong fiscal autonomy, while noting its greater sensitivity to potential recessions. In this context, S&P gives special value to the region’s debt reduction strategy in recent years.
Importantly, S&P underlines that, due to its unique status and unlike other regions, Navarre shows low dependency on state support. This factor, among others, justifies the rating being two notches above that of Spain.
Boost from the 2025–2027 Investment Plan
The agency also praises the prudent economic management of the regional government, which has made it possible to use budget surpluses to reduce indebtedness. In 2024, those surpluses have also allowed the launch of a €125 million Investment Plan for 2025–2027. According to S&P, this initiative will help maintain a high level of public investment in 2026 and 2027, cushioning the impact of the gradual phasing out of Next Generation EU funds.
A competitive and export-oriented economy
Standard & Poor’s also points out that Navarre’s economy is wealthier, more competitive, and more open to international trade than the national average. Despite some drops in exports — primarily due to the automotive sector — the report highlights strong performance in construction and services. It also emphasises Navarre’s labour market as one of its key strengths, with an unemployment rate significantly lower than the national average.
Solid outlook for 2025–2027
Looking ahead, the report confirms that Navarre once again exceeded expectations in 2024, recording a budget surplus similar to that of the previous year. S&P attributes this result to more balanced-than-expected revenues and expenditures. It also forecasts that the region will maintain a strong fiscal position between 2025 and 2027, even in a context of mild economic slowdown.
Given these figures, Invest in Navarra–Sodena invites all foreign-owned companies interested in setting up operations or developing investment plans in Navarre to explore the range of services we offer. All information is available on our website.
Source: navarra.es