Balearic Islands' Economy Grows 3% in Q3 2025 with Menorca Leading on Diversification

The Balearic Islands' economy expanded by 3% in the third quarter of 2025, surpassing both the European Union's average growth of 1.6% and Spain's 2.8%, according to a report presented by Antoni Costa, Vice President of the Balearic Government, and Catalina Barceló, Director General of Economy and Statistics. This marks the seventh consecutive quarter of growth, with all islands contributing: Mallorca grew 3.1%, Menorca 2.1%, and the Pitiusas 2.7%. Menorca stood out as the only island improving on its previous year's performance.

Tourism spending in the first ten months of 2025 rose by 4.8%, reaching €22.707 billion, with Menorca experiencing the highest increase at 7.6%. Average daily tourist spending hit €199, led by the Pitiusas at €225.

Despite a strong service sector growth of 3.1%, Menorca’s economy is uniquely diversified. Unlike the heavier tourism dependence seen elsewhere in the Balearics, Menorca maintains a robust industrial sector constituting 8.6% of its total value added, significantly higher than Mallorca and the Pitiusas. The island’s industrial park hosts 474 companies, with industrial employment representing 9.1% of total jobs, compared to the Balearic average of 5.4%. This diversification offers resilience to tourism-related shocks, as demonstrated during the COVID-19 pandemic.

Menorca’s population growth since 2002 is 36%, which is below the Balearic average of 42% but surpasses EU and Spain averages. However, its per capita GDP of €26,000 remains below both the Balearic and EU averages, reflecting slower historical growth.

Inflation in the Balearics reached 3.6% in October 2025, slightly above the national average of 3.1%, with underlying inflation at 3%. Employment across the region hit a record high in October, with 605,034 affiliates, including 1,404 new jobs in Menorca — a 4.6% increase over the previous year.

Antoni Costa emphasized that Menorca’s economic diversification "is larger than in the rest of the islands and this is an added value," highlighting that the island’s balanced economy strengthens its capacity to withstand tourism downturns.

Currently, the Balearic economy continues to demonstrate significant growth and resilience, driven by strong tourism activity and Menorca's successful efforts to diversify economically beyond the tourism sector.