In 2023, the Balearic Islands was the third region in the European Union with the highest real GDP growth, increasing by 5.7% compared to the previous year, according to Eurostat data. Only Malta (+6.7%) and Severen Tsentralen in Bulgaria (+5.8%) recorded higher growth.

Tourists at terraces in Alcúdia. Photo: Jaume Capella – AETIB.

This growth places the Balearic Islands well above the EU average, where real GDP increased by only 0.4% in 2023. Spain also saw significant growth in the Canary Islands (+5.1%), reinforcing the economic recovery of the country’s main tourist destinations. In total, real GDP grew in 154 EU regions, while 85 saw declines, with Vorarlberg (Austria) recording the largest decrease (-14.1%), followed by Provence-Alpes-Côte d’Azur (France, -12.9%) and Groningen (Netherlands, -11.1%).

Regarding Spain, following the Balearic Islands and the Canary Islands were La Rioja (4.2%), Castilla-La Mancha (3.3%), Castilla y León (3%), Principality of Asturias (2.8%), Extremadura (2.7%), Cantabria and Aragón (2.6%), Catalonia and the Community of Madrid (2.5%), Andalusia and the Basque Country (2.4%), the Valencian Community and Galicia (2.3%), the Chartered Community of Navarre (2.1%), the Region of Murcia (2%) and, lastly, the Autonomous Cities of Melilla (1.8%) and Ceuta (1.7%).

The 10 EU regions with the highest GDP growth in 2023:

  • Malta 6.7%
  • Severen Tsentralen (Bulgaria) 5.8%
  • Balearic Islands 5.7%
  • Canary Islands 5.1%
  • Hovedstaden (Denmark) 5%
  • Grad Zagreb (Croatia) 4.9%
  • Languedoc-Roussillon (France) 4.5%
  • Região Autónoma da Madeira (Portugal) 4.5%
  • Centre-Val de Loire (France) 4.4%
  • Sostinės regionas (Lithuania) 4.4%

The 10 EU regions with the largest GDP declines in 2023:

  • Vorarlberg (Austria) -14.1%
  • Provence-Alpes-Côte d’Azur (France) -12.9%
  • Groningen (Netherlands) -11.1%
  • Southern Region (Ireland) -10.9%
  • Norra Mellansverige (Sweden) -7.7%
  • Rheinhessen-Pfalz (Germany) -7.3%
  • Picardie (France) -6.4%
  • Yugoiztochen (Bulgaria) -4.3%
  • Észak-Magyarország (Hungary) -4.2%
  • Corse (France) -4.1%

GDP per capita in the Balearic Islands reaches the EU average

In addition to notable real GDP growth, the Balearic Islands reached 100% of the EU average GDP per capita in 2023, consolidating a steady upward trend in recent years. In 2020, this indicator stood at 78%, rising to 84% in 2021, 95% in 2022, and finally 100% in 2023. This progress reflects the region’s rapid economic recovery following the pandemic and the boost from the tourism sector, which is key to the Balearic economy.

In terms of GDP per capita, the most prosperous EU regions were East and Midland in Ireland (244.7% of the EU average), Luxembourg (236.8%) and Southern Region (224.7%), also in Ireland. The high GDP per capita in these regions is explained by the presence of large multinational companies, tax advantages, and strong foreign investment attraction, particularly in sectors such as technology, finance, and pharmaceuticals.

At the other end of the scale, the EU regions with the lowest GDP per capita were Mayotte (France, 27.6%), Yuzhen Tsentralen (Bulgaria, 41.3%) and Voreio Aigaio (Greece, 42.3%).

With these figures, the Balearic Islands establishes itself as one of Europe’s most dynamic regional economies.

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