Professional activities, hospitality and tourism drive economic recovery in the archipelago, with record figures in employment and spending

The services sector in the Balearic Islands continues its momentum in 2025 with a growth of 6.2% in the first five months of the year, more than double the national average (3.2%), according to the July monthly economic report prepared by the Ministry of Economy. The strong performance of the hospitality industry and professional activities is leading this progress, in a context where nearly all subsectors show positive signs, except administrative activities.

Tourism remains a key driver

camarero paro

hospitality waiter

Tourist spending accumulated up to May reached €5.613 billion, a 7.9% increase compared to the same period in 2024. This growth is accompanied by an increase in average spending per person per day (+4.5%), now at €186. The total number of visitors also rose (+3.7%), with the German market standing out, contributing one in every three tourists.

More investment and more consumption

The economic dynamism is not limited to tourism. During the first quarter of the year, domestic consumption grew by 0.7% and foreign investment rose by 37.2%, reaching €139.7 million. These figures confirm investor confidence and the gradual recovery of local demand.

Housing and construction on the rise

One of the most striking indicators in the report is the sharp increase in new housing construction. In May alone, approved housing projects rose by 101.6% compared to the same month the previous year. From January to May, the growth stands at 47.7%, anticipating a new expansion cycle in residential building.

Stable industry, record employment

Although industrial growth is more moderate (+0.8%), it contrasts with the sector’s decline at the national level. This set of positive indicators translates into a strong labor market: in June, the Balearic Islands reached a historic high in Social Security affiliation with 643,547 people employed, a 2.7% increase compared to the previous year, driven mainly by the services and construction sectors.

Inflation above the average

Finally, along with the Basque Country, the Balearic Islands was one of the regions with the highest price increases in May, with a 2.8% year-on-year rate. The sectors that contributed most to this rise were transportation, housing, and dining.