Economic activity in the Balearic Islands showed notable momentum in August, particularly within the service sector, where turnover increased at a pace far above the national average. According to the Economic Outlook of the Balearic Islands for November, hospitality and transport led this performance with an annual rise of 8.3%, tripling Spain’s overall growth of 2.8%.
The report highlights that both household spending and internal investment continue to support the region’s economic expansion. Consumer expenditure grew 0.6% year-on-year in the second quarter, while the creation of new companies rose 3.7% up to August. In contrast, foreign investment fell by 10.3% in the first half of 2025.
Tourism data from the first nine months of the year show that the islands are progressing more in value than in visitor numbers. Between January and September, tourism expenditure reached €20.492 billion, representing a 5.5% increase compared to 2024. Average spending per tourist stood at €1,232 (+3.1%), while daily spending rose to €201 (+5.2%).
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Baleares’ Service Sector Drives Strong Economic Growth in August
During this period, the islands welcomed 16.6 million visitors (+2.4%). Of these, 13.7 million were international tourists (+3.0%), while 2.9 million came from within Spain (–0.6%). Air passenger numbers also grew overall, rising 1.4% to 19.9 million, driven mainly by increases in Mallorca and Ibiza.
The construction sector continues to strengthen, as shown by the rise in building permits. A total of 3,375 new housing units were approved— the highest figure since 2008 — representing an annual increase of 11.9% and a cumulative growth of 33.7% so far in 2025.
Industry also maintained strong momentum, with the Balearic Islands recording the highest production increases in Spain throughout the year. Capital goods and durable consumer goods drove a 5.2% rise in industrial output up to September, compared with only 1.1% nationwide.
Employment continued to grow in October, with 2.7% more registered workers than in 2024, reaching 605,034 affiliates. Services and construction led job creation, while industry grew 1.8% and agriculture remained stable.
Finally, the Balearic Islands registered one of the sharpest increases in consumer prices in October, matching the rise seen in the Madrid region. The largest increases were seen in hotels, restaurants, cafés, and housing, with a yearly rate of 3.6%, four-tenths above the national trend. Core inflation also climbed to 3.1%, remaining higher than Spain’s average.