Independent body forecasts a 2.9% GDP increase in 2025 and 1.9% in 2026
Debt-to-GDP ratio expected to continue declining, nearing 15% by 2029

The Balearic Islands are projected to be the Spanish autonomous community with the highest GDP growth between 2025 and 2026, according to the latest Medium-Term Fiscal and Structural Plan Monitoring Report 2025–2028 published by the Independent Authority for Fiscal Responsibility (AIReF).

For the current fiscal year (2025), economic growth is expected to reach 2.9%, outperforming all other Spanish regions and the national average of 2.3%. In 2026, the Balearic Islands are forecasted to grow by 1.9%, matching only the Community of Madrid and two-tenths above Spain’s average.

TDB keeps you informed. Follow us on: Facebook, Twitter and Instagram

The Balearic Islands to Lead Spain’s Economic Growth Between 2025 and 2026, According to AIReF

This confirms AIReF’s outlook of stronger GDP growth for the Balearic Islands, which is higher than the 2.7% forecasted by the Regional Directorate-General for Economy and Statistics of the Balearic Government. On May 8, AIReF officially endorsed the Balearic Islands’ macroeconomic forecasts for 2025.

Furthermore, the independent agency highlights a continued decline in the public debt ratio, which is expected to approach 15% of GDP by 2029, driven by sustained economic growth and projected primary budget surpluses over the coming years.

It is worth noting that the Balearic Government has been reducing its debt in relative and absolute terms since the beginning of the current legislature. In 2024, the region ended the year with a debt equivalent to 19.7% of GDP, falling below the 20% threshold for the first time since 2012. In absolute terms, the regional debt stands at €8.121 billion.