The Balearic Islands are emerging as the Spanish region with the highest economic growth between 2025 and 2026, according to the latest Monitoring Report on the Medium-Term Fiscal and Structural Plan 2025–2028 published by the Independent Authority for Fiscal Responsibility (Airef).

Economic growth Balearic Islands

The organisation estimates that the Gross Domestic Product (GDP) of the Balearic Islands will grow by 2.9% in 2025, surpassing both the national average of 2.3% and all other Spanish regions. For 2026, the forecast points to a 1.9% growth, matched only by the Community of Madrid and two tenths above the national average.

These figures are even more optimistic than those presented by the Directorate General for Economy and Statistics of the Government of the Balearic Islands, which forecasted a 2.7% increase for 2025. However, Airef officially endorsed these projections on 8 May.

Downward trend in public debt

Beyond economic growth, Airef highlights the positive development of public finances in the Balearic Islands. The region has been able to progressively reduce its public debt, both in absolute and relative terms. In 2024, the debt-to-GDP ratio stood at 19.7%, falling below 20% for the first time since 2012, with a total debt of 8.121 billion euros.

According to the report, this downward trend will continue thanks to sustained economic growth and the expected primary surpluses in the coming years. It is estimated that public debt could fall to around 15% of GDP by 2029.

A positive economic outlook

Airef’s report reinforces the favourable economic outlook for the Balearic Islands, establishing the region as one of the country’s economic drivers in the medium term. The combination of sustained growth and debt reduction allows the regional government to face upcoming years with greater financial capacity and flexibility to implement public policies.