Balearic economy posts growth above 3% for 7 quarters in a row

The economy of the Balearic Islands maintains a solid momentum, as shown in the Análisis de Coyuntura report presented today. In the third quarter of 2025, the archipelago once again grew by a 3%, a figure that exceeds the Spanish average (2,8%) and almost doubles that of the European Union (1,6%). This makes seven consecutive quarters with growth rates above 3%.

Economic Outlook Balears 4th quarter 2025

The First Vice-President of the Govern de les Illes Balears, Antoni Costa; the Director General of Economy and Statistics, Catalina Barceló; the President of the Consell de Menorca, Adolfo Vilafranca, and the island Councillor for Economy and General Services, María Antonia Taltavull, during the presentation of the Economic Outlook of the Balearic Islands for the fourth quarter of 2025. Photo: CAIB.

Mallorca leads the expansion with 3,1%. It is followed by the Pitiüses with 2,7% and Menorca with 2,1%, the latter being the only island to improve on its figure compared with 2024.

By sector, the advances are clear:

Services: +3,1%.
Industry: +2,4%.
Construction: +2,3%.
Primary sector: +0,7%.

Increase in employment

The economic improvement is directly reflected in employment. Affiliation reaches record levels and maintains steady growth. In October there were 605.034 registered workers, 2,7% more than in 2024. 86% of this increase comes from the services sector. In addition, 61,8% of new hires have secondary education or vocational training.

Change in affiliation by sector

Services: 507.686 registered workers (+2,7%).
Construction: 62.301 registered workers (+2,6%).
Industry: 31.320 registered workers (+1,8%).
Primary sector: no change.

Tourist spending at record levels: more value and less volume

Tourism remains one of the main drivers of the archipelago’s economy and is moving towards a model with higher added value. Cumulative spending between January and October amounts to 22.707 million euros (+4,8%).

By island, growth in spending is as follows:

Menorca: +7,6%
Pitiüses: +5,1%..
Mallorca: +4,4%.

Daily spending per person reaches a record high of 199 euros:

Pitiüses: 225 €.
Mallorca: 197 €.
Menorca: 171 €.

Up to October, 18,4 million tourists (+1,8%) arrived, with Menorca once again leading growth (+6,2%).

More value and less volume

Tourism trends confirm a change in direction:

Daily spending: +5,1%
Tourists: +1,8%
Overnight stays: –0,3%

Spending is increasing much more than arrivals and length of stay, confirming a shift towards more profitable tourism. Average demographic load rises by 0,3% up to September. The daily maximum reached 1.863.000 people on the 30th of that month.

Business activity, industry and trade

The Balearic economic fabric shows a positive evolution. Hospitality and professional activities drive turnover, which increases by 7,6%, well above the national average.

Industry grows by 4,3%, with advances in consumer goods, intermediate goods and energy.

In foreign trade, Balears records a surplus of 621 million euros. Domestic trade shows a negative balance of 4.304 million, indicating a change in the geographical origin of suppliers.