Economic boom in Ibiza: 3.3% growth in the first quarter of 2023!

Economic boom in Ibiza: 3.3% growth in the first quarter of 2023!

On August 31, 2025, the regional government of the Balearic Islands announced positive economic statistics for Ibiza and Formentera. In the first quarter of 2023, the two Pityuse islands recorded a remarkable growth of 3.3 percent. These figures are part of a general trend where the Balearic Islands are considered one of the fastest growing regions in Spain. In comparison, Mallorca grew by 3.6 percent, making the island another important growth engine in the Balearic archipelago. The overall economy of the Balearic Islands experienced growth of 3.4 percent, exceeding the original forecast of 2.7 percent Diary of Ibiza reported.

The economic developments underline the central role of the tourism sector, which remains the main driver of the Balearic economy. In the first six months of 2023, tourism revenue rose to an impressive 8.744 billion euros, an increase of 6.1 percent compared to the previous year. The average amount spent per tourist was 1,103 euros, which represents an increase of 2.8 percent. In addition, vacationers said they spent an average of 193 euros per day, which means an increase of 4.4 percent.

Tourism and transport

The number of international visitors has also increased. In the first half of 2023, 7.9 million tourists came to the Balearic Islands, an increase of 3.2 percent compared to the previous year. The airports in the Balearic Islands, including Palma, Ibiza and Maó, recorded a total of 3.5 million arrivals in July 2023 - the highest number since July 2016. Of this number, Ibiza accounted for around 700,000 arrivals.

Strong demand in the tourism sector has also led to an increase in approvals for new housing. A total of 2,161 residential building permits were issued in the first half of 2023, the highest number since 2008, representing an increase of 42.3 percent compared to 2024. Ibiza and Formentera received 448 of these permits, while Mallorca recorded the largest number with 1,573 permits.

Social and economic indicators

Industry in the Balearic Islands also presented positive figures, with production increasing by 5.4 percent, above the national average of 4.9 percent. The number of social security contributions rose by 2.6 percent to 655,966 people in July 2023, indicating a healthy employment situation. Still, inflation in the community remained at 3.5 percent in July, above the national average of 2.7 percent.

The current economic developments and the positive growth dynamics in both Ibiza and Formentera show that the Balearic Islands are on a stable path of economic progress. These statistics act as indicators of robust growth based on both services and the thriving tourism sector, such as Ibiza Today reported.