The construction sector is experiencing a dynamic period in the Balearic Islands thanks to a notable increase in housing permits during the first quarter of 2025. According to the latest Economic Outlook published by the Directorate-General for Economy and Statistics, the annual variation recorded in March was 67.9%, bringing the year-on-year growth for the first quarter to a notable 27.6%. This level of activity is similar to that of 2021, one of the years with the highest construction volume of the past decade. Growth has been particularly strong in the Pityusic Islands and in Menorca.
This momentum in the construction sector is acting as an additional driver for the Balearic economy, which shows a growth forecast of 2.7% for 2025. This figure slightly exceeds the forecasts for Spain (2.6%) and the European Union (1.1%), although the regional government is taking a cautious stance compared to other forecasting bodies.
Service sector continues to expand
The positive economic momentum is also reflected in the service sector, which continues to expand, with a year-on-year variation of 3.7% in the first quarter. Tourism remains a key activity: tourist spending reached 1.32 billion euros (+5.7%), with increases in both spending per person (€1,026, +3.0%) and per person per day (€155, +7.2%). The number of visitors also rose to 1.28 million (+2.6%), and the average stay remained at 6.6 days.
In addition, industrial production saw strong progress during the first three months of the year. As for prices, the Balearic Islands led the increase in April and widened the gap compared to the national average. Core inflation also remains at high levels: 3.0% in the Balearics and 2.4% in Spain.
In the labour market, Social Security affiliation reached a new record for the month of April, with 574,166 affiliates (+3.4%). The service and construction sectors were the main contributors to this growth. Although the primary sector posted a year-on-year decline of -1.1%, it achieved the third-best result since 2009.
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