The Balearic Islands’ economy continued to demonstrate solid momentum during the third quarter of 2025, posting 3% growth and completing seven consecutive quarters above that threshold. This performance nearly doubles the European Union’s average rate (1.6%) and exceeds Spain’s national growth rate (2.8%). The findings are included in the Economic Outlook Report for the Balearic Islands – Q4 2025, presented in Menorca by First Vice President Antoni Costa and Director General of Economy and Statistics Catalina Barceló, together with Menorca Council President Adolfo Vilafranca and Island Councillor for Economy and General Services María Antonia Taltavull.
All islands reported positive results: Mallorca led with 3.1% growth, the Pityusic Islands reached 2.7%, and Menorca grew by 2.1%, the only island to improve its rate compared to 2024.
By sectors, services delivered the strongest performance (+3.1%), followed by an acceleration in industry (+2.4%), while construction grew 2.3% and the primary sector maintained 0.7%.
TDB keeps you informed. Follow us on: Facebook, Twitter and Instagram
Balearic Islands Maintain Strong Growth and Reach 3% in the Third Quarter of 2025
This dynamic economic environment is reflected in the labour market, which reached a new record with 605,034 registered workers in October, an annual increase of 2.7%. Costa noted that 15,714 more people are now employed than last year, with 86% of the new positions in the service sector. Menorca also showed notable improvement, adding 1,404 new workers (+4.6%).
Tourism expenditure between January and October reached €22.707 billion (+4.8%), with Menorca showing the strongest growth (+7.6%), followed by the Pityusic Islands (+5.1%) and Mallorca (+4.4%). Daily spending per visitor climbed to a record €199, reaching €225 in the Pityusic Islands, €197 in Mallorca and €171 in Menorca.
A total of 18.4 million tourists visited the Balearic Islands up to October, representing a 1.8% increase, with Menorca again leading (+6.2%). Barceló highlighted that daily tourist spending (+5.1%) is rising faster than the number of visitors (+1.8%) and overnight stays (–0.3%), confirming a strategic shift towards more value and less volume.
Business activity also performed well: turnover in hospitality and professional services rose 7.6%, far above the Spanish average (+4.7%). Industrial production expanded 4.3%, driven by consumer goods, intermediate goods and energy. Foreign trade recorded a €621 million surplus, while domestic trade showed a structural shift in suppliers.
Despite the generally positive landscape, Costa expressed concern about inflation, which reached 3.6% in October, higher than the Spanish average (3.1%). Core inflation also increased to 3.0%, compared with 2.5% nationally.