The economy of the Balearic Islands grew by 3.2% year-on-year in the first quarter of 2024, according to the “Economic Momentum of the Balearic Islands” report for August, published by the Directorate General for Economy and Statistics. This figure is in line with the upward revision of the economic growth forecast for 2024 made by the Government of the Balearic Islands in July, which also stands at 3.2%.

During the first quarter, the Pitiüses led economic growth with an increase of 4.8%, followed by Mallorca with 3.1% and Menorca with 2.7%.

The tourism sector on the rise

The results of the tourism sector in the first half of 2024 show an improvement both in terms of volume and quality. The average expenditure per tourist increased by 5.4%, while the daily expenditure rose by 7.6%, reaching 1,073 euros per person and 185 euros per day, respectively.

In terms of tourist volume, the first half of the year recorded the arrival of 7.68 million visitors, an increase of 7.8% compared to the same period the previous year. Overnight stays also grew by 5.5%, reaching a total of 44.6 million.

Strength of the services sector

Sales in the services sector demonstrate the strength of turnover in the subsectors of hospitality, administrative activities, and professional services. Conversely, retail trade experienced a decline in its turnover compared to June 2023. In the construction sector, the number of approved housing projects saw a slight decrease, although it remains at levels comparable to 2019. Industrial production, both in the Balearic Islands and across Spain, registered a drop in June. However, in overall terms, the Balearic Islands and La Rioja led growth in services during that month.

Labour market

In the labour market, the average affiliation in the Balearic Islands continues to grow and is approaching 640,000 workers, an increase of 3.1% compared to 2023. All sectors contributed to the increase in employment, particularly the services sector, which, with a growth of 3.4%, reached record levels.

Finally, headline inflation eased in July, mainly due to the decline in housing and food prices. Core inflation also showed a downward trend, remaining below the headline rate.