Illes Balears Economy Outpaces EU with Robust 3.2% Growth in Q2 2025

The economy of Illes Balears has demonstrated remarkable resilience and growth, expanding by 3.2% in the second quarter of 2025. This growth rate is notably double the European Union average of 1.6% for the same period and surpasses Spain’s overall growth of 2.8%, marking the sixth consecutive quarter with growth above 3%.

All sectors in the Illes Balears contributed positively, with the services sector leading at 3.3%, closely followed by construction (2.3%), industry (2.0%), and the primary sector (0.7%). Economic gains were consistent across the islands, with Mallorca growing 3.2%, the Pitiusas 3.0%, and Menorca 2.1%. Employment also reached record levels, with 639,122 affiliates in September 2025, reflecting a 2.6% increase compared to the previous year; the bulk of new jobs emerged within services.

Tourism remains a key driver of economic activity, with total spending hitting €17.363 billion by August—a rise of 5.6%—and a daily average spend of €202 per visitor. The total number of tourists reached 14.1 million, growing by a modest 2.4%, with Mallorca and Menorca recording higher increases than Ibiza and Formentera.

Nevertheless, inflation poses a concern, as the Illes Balears recorded a higher rate (3.3% in September) than the national average of 3.0%. Underlying inflation also remains elevated at 2.8% versus 2.4% nationally, prompting caution from regional leaders.

These data were presented by Vice President Antoni Costa and Director General of Economy and Statistics Catalina Barceló, who highlighted the strength and diversification of the economy despite some moderation in growth relative to previous years. In contrast, the Canary Islands are expected to face a slowdown in growth, underscoring Illes Balears’ standout economic performance.

With solid economic indicators and strong employment figures, Illes Balears continues to strengthen its position as a dynamic regional economy within Spain and the broader European context.