The Regional Ministry of Economy, Finance and Innovation publishes the Economic Moment, which is updated monthly based on an analysis of seven areas of interest.

Tourism continues to improve in value in the first quarter of 2024, with more spending per person (996€) and per person per day (145€)

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Consumption in the Balearic Islands rises 1.5% year-on-year

The synthetic indicator of consumption in the Balearic Islands has risen by 1.5% year-on-year in the 4th. This is an educational and interactive report that is published and updated every month and analyses the Balearic economy based on seven areas of interest: the Gross Domestic Product (GDP), the situation of tourism, construction, the labour market, the service sector, industry and the evolution of the Consumer Price Index (CPI).

The report confirms that this growth is due to the positive variation of both consumption (2.7% in 2023) and foreign investment (33.5% in the second half of last year).

The updated data for the tourism sector show dynamism in the first quarter. On the one hand, tourism expenditure reached 1,249.7 million euros in the first quarter of 2024, a 28.3% increase. Moreover, in the first quarter of the year there was a clear improvement in value, with expenditure per person of 996 euros – 9.4% more than last year – and expenditure per person per day of 145 euros – 12.1% more than in 2023. There is also an improvement in quantity: in the first quarter of 2024 the number of tourists arriving in the Balearic Islands increased by 17.3 %, with 5.9 million overnight stays in hotels in the first four months of the year, which represents a +18.5 % annual variation.

Turnover in the services sector in the Balearic Islands is also active, despite a slowdown in its rise in March. It recorded an annual variation in the third quarter of +4%, much higher than the national context where the turnover of services fell by 5.8% and plummeted in most of the autonomous communities.

On the other hand, public administration tenders, an important pillar for construction, were reactivated in the first months of the year and achieved the highest figure since 2018. Thus, the amount of official tendering in the Balearic Islands grew in the first quarter -105 million euros- with an annual variation of +9.5% in the Balearic Islands.

In addition, Social Security enrolment reached a new record for April with 555,430 enrolled, driven by services, which has a weight of 82.4 % of the total and shows the most significant increase, with a year-on-year rise of 3.7 %.

In the industrial sector, production and turnover fell sharply in March. Thus, the value of company turnover, after four months of strong increases, stands at -9.6 % year-on-year. This reduction is observed in all goods, not only in energy, with an annual fall in the third quarter of 14.8%, in line with the decline in Spain as a whole of 11.3%.

Finally, headline inflation in April exceeded core inflation for the first time in 17 months, while headline inflation rose by 3.6% year-on-year as a result of the push in food and energy products.

The Economic Moment publication can be consulted at the following link: https://tn.caib.es/MomentEconomicmaig24