Balearic Islands’ Economy Grows 3.4% in Q1 2025, Marking Five Consecutive Quarters Above 3%

Jul 5, 2025 | Current affairs, Featured, Interview, Portada, Post, Revista Lloseta, Thursday Daily Bulletin, Tradition

According to the Economic Outlook Report from the Government of the Balearic Islands, the region’s economy grew by 3.4% year-on-year in the first quarter of 2025, outperforming the national average (+2.8%) and the EU average (+1.6%). Mallorca led the growth with +3.6%, followed by the Pitiusas (+3.3%) and Menorca (+1.7%).

All sectors experienced growth, especially services (+3.8%). Social Security affiliation reached record highs in May with 638,590 affiliates, representing a 2.6% year-on-year increase.

Tourist spending hit a record €3.094 billion by April, with an average daily expenditure per person of €170, especially rising in the Pitiusas (+20.4%). Tourist arrivals increased 8.1%, except from the UK (-8.5%) and Belgium (-1.3%).

Industrial production rose 8.3%, and the trade balance showed a surplus of €223.5 million. Despite declines in housing starts and completions, the construction sector remains strong, with a 38.1% increase in approved housing projects.

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Balearic Islands’ Economy Grows 3.4% in Q1 2025, Marking Five Consecutive Quarters Above 3%

The report highlights human capital as a key challenge. Although 45% of people aged 25–34 hold higher education degrees—meeting the EU 2030 Education Framework target—Baleares has the highest early school dropout rate in Spain (20.1%), far above the national average (13%) and EU average (9.3%). The gap is particularly wide between men (27.9%) and women (11.9%).

The region also faces a high rate of job overqualification (36.5%), as its tourism-driven economy generates strong demand for low-skilled jobs, often luring young people into the labor market before completing their studies.