The Balearic economy in 2025 closed the year with 3% growth, outperforming Spain’s average (2.8%) and doubling that of the European Union (1.5%). This progress consolidates a cycle of sustained expansion and places the archipelago among the most dynamic economies in its environment.
According to the economic outlook report for the first quarter, presented by the vice-president and minister for Economy, Finance and Innovation, Antoni Costa, and the director general for Economy and Statistics, Catalina Barceló, growth was mainly driven by the services sector, which advanced by 3.2%, together with the positive performance of construction and industry.
The director general for Economy and Statistics, Catalina Barceló, and the vice-president and minister for Economy, Finance and Innovation, Antoni Costa, during the presentation of the 2025 Balearic economic data. Photo: CAIB.
The strong economic performance was also reflected in the labour market, which reached 571,475 registered workers, 2.8% more than the previous year, marking historic highs. This was accompanied by the strength of tourism, with total expenditure reaching 23.406 billion euros (+4.7%) and average daily spending per tourist rising to 197 euros, also at record levels.
Growth in value, above visitor volume, reinforces the shift towards a tourism model based on higher quality and higher spending, while construction continues its recovery with more building permits and favourable investment performance. Industry, meanwhile, maintains positive rates despite a demanding environment.
Moderation in 2026 and factors of uncertainty
The first indicators for 2026 point to a moderation in the pace of activity, especially in variables linked to tourism and trade, although employment continues to show dynamism and construction maintains a positive trend.
In this context, the report underlines the impact of the international environment, marked by the conflict in the Middle East, as a factor of uncertainty for short-term economic developments.
The rise in oil prices, especially Brent, is putting upward pressure on fuel and transport prices, which could feed through into inflation after months of moderation (CPI stood at 2.2% in February 2026).
In addition, the geopolitical context is already being reflected in the financial markets, with an Euribor of around 2.8% and a slightly upward trend, as well as declines in the stock markets in an environment of high volatility.
Possible effects on tourism
One of the most sensitive areas is tourism. The increase in the price of kerosene could make flights more expensive – the main means of access for 85% of visitors – and partially affect demand.
Even so, the Balearic Islands maintain a strong position as a mature destination, aimed at a medium-to-high-income segment, which reinforces their capacity for resilience in uncertain scenarios, according to sources from the Balearic Government.
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