A new economic analysis presented in Ibiza has raised questions about the island's rapid population growth, productivity, wages and the long-term sustainability of the Balearic economic model.

The presentation of the Informe Fénix took place at the Ibiza headquarters of the Universitat de les Illes Balears, where economists Miquel Puig and Guillem López Casasnovas discussed the report's findings and their relevance to the Balearic Islands.

Although the original Informe Fénix focuses primarily on the evolution of the Catalan economy, its authors have used comparisons with the Balearic Islands, while the Ibiza presentation examined how some of its conclusions could help explain economic and social pressures affecting Ibiza and Formentera.

Ibiza’s Population Has Grown Sharply

One of the clearest figures discussed during the presentation was Ibiza's population growth.

According to data presented at the event, the island had around 88,000 residents in 2001 and approximately 168,000 in 2026.

That represents an increase of roughly 90% in 25 years. The figure was highlighted during the presentation as an important factor when considering the pressure placed on housing, infrastructure and public services.

The figures differ slightly depending on the reference year and population dataset used, so the safest description is that Ibiza's resident population has increased by around 90% since the beginning of the century.

From Economic Convergence to Divergence

A central argument of the analysis concerns the relationship between economic growth and income per person.

According to the figures presented for the Balearic Islands, GDP per capita increased substantially relative to France during the decades before 2000.

The Balearic figure reached around 90% of the French level by the beginning of the century.

Since then, however, that relative position has deteriorated. The figure presented at the Ibiza event placed Balearic GDP per capita at around 80% of the French level today.

The argument is therefore not that the Balearic economy has stopped growing, but that growth in total economic output has not translated into the same level of improvement in output or income per resident.

Productivity Is at the Centre of the Debate

Economist Miquel Puig argued that the main problem is the relationship between economic growth and productivity.

His interpretation is that much of the growth experienced by the Balearic economy since 2000 has come from adding more workers rather than from producing significantly more value per worker.

During the presentation, Puig contrasted growth in total GDP with the much weaker evolution of GDP per capita and productivity.

The argument forms part of the wider thesis of the Informe Fénix, which examines how economies can increase their overall size without delivering equivalent improvements in material living standards.

Low-Paid Employment Is a Key Concern

The presentation also focused heavily on wages.

The Informe Fénix identifies a threshold below which the authors consider a worker's salary insufficient to cover, through taxes and social contributions, the cost of the public services they use.

The report places that threshold at €27,500 in 2023 terms, while Miquel Puig has referred to a figure of approximately €30,000 when expressed in 2026 terms.

This is an analytical concept developed by the report's authors rather than a legal or official minimum-income threshold.

The authors argue that sectors with large numbers of workers earning below this level can create an indirect burden for public finances because part of the cost of the services used by those workers is ultimately funded collectively.

Tourism and the Balearic Economy

Tourism was another central part of the discussion.

The economists did not argue that tourism itself is inherently a low-productivity activity. Instead, they compared different tourism-based economies and argued that tourism can generate significantly greater productivity when it is associated with higher-value activities and better-paid employment.

The report's analysis identifies the structure of economic activity and the level of wages as more important than simply whether a region has a large tourism sector.

At the Ibiza presentation, Puig argued that the Balearic economy has created large numbers of relatively low-paid jobs, particularly in sectors associated with tourism and services.

Population Growth and Economic Growth

The relationship between population and economic growth is another important element of the debate.

The economists argued that an economy can increase its total GDP simply by adding more workers and consumers, without necessarily increasing GDP per capita to the same extent.

That distinction is particularly relevant for Ibiza, where the resident population has increased substantially while the island has also experienced strong tourism demand.

The presentation therefore linked population growth with wider questions about housing, public services and infrastructure, although these pressures have multiple causes and cannot be attributed to population growth alone.

Pressure on Housing and Public Services

The economic discussion also addressed the consequences of rapid demographic growth.

Housing affordability was identified as one of the areas where the effects are particularly visible.

The presentation argued that an economy designed around a much smaller population can face difficulties when the number of residents increases dramatically without equivalent improvements in infrastructure and public services.

The same broader concerns are reflected in other recent analysis of Ibiza's infrastructure, including warnings about pressure on water and wastewater systems. Recent data from the Alianza por el Agua show that the volume of wastewater entering Ibiza's publicly managed treatment plants increased by 6.8% between 2021 and 2025.

The Report Does Not Specifically Study Ibiza

An important distinction is needed when interpreting the findings.

The Informe Fénix was produced as an analysis of the Catalan economic model. It includes comparative analysis of other regions, including the Balearic Islands, but it is not an independent economic report specifically commissioned to study Ibiza or Formentera.

The Ibiza presentation was an application and discussion of its broader economic arguments in the context of the Pitiusas.

That means statements about Ibiza's economic future should be understood as interpretations based on the report and the economists' presentation, rather than as official forecasts for the island.

A Debate About the Future Economic Model

The presentation also raised questions about what type of growth the Balearic Islands should pursue.

The economists argued for greater productivity and better-paid employment rather than relying primarily on creating additional low-paid jobs.

Among the ideas discussed in the wider Informe Fénix are measures aimed at reducing the expansion of sectors considered by its authors to generate low-paid employment and encouraging higher-value economic activity.

These are recommendations and economic interpretations from the report's authors, not current government policy.

Airport Expansion Enters the Discussion

Ibiza Airport was also discussed during the presentation because of its connection with the island's future tourism capacity.

Guillem López Casasnovas argued that increasing airport capacity could add further pressure to a system already experiencing significant demographic and tourism growth.

That represents the economist's assessment of the potential consequences of airport expansion, rather than a finding that the planned airport project will necessarily produce a particular level of additional tourism.

Aena has separately described its planned Ibiza Airport remodelling as a project focused on infrastructure, safety, operational efficiency and passenger experience, while stating that it will not increase the airport's hourly aircraft movement capacity.

A Different Way of Measuring Growth

The central message from the presentation was that economic growth should not be measured only by the size of the economy.

The economists argued that GDP growth needs to be considered alongside GDP per capita, productivity, wages and the ability of public services and infrastructure to support the population.

For Ibiza, that debate is particularly relevant given the island's substantial population increase over the past quarter-century and the continuing pressure on housing, transport, water and other essential services.

What the Informe Fénix Is Actually Saying

The report does not argue that Ibiza's economy has stopped growing.

Its central argument, as presented in Ibiza, is more specific: economic growth based heavily on adding workers and low-paid employment can increase total GDP without producing equivalent gains in productivity or income per resident.

The economists therefore argue that the challenge for the Balearic Islands is not simply to create more employment, but to create higher-value economic activity capable of supporting better wages and greater productivity.

For Ibiza and Formentera, the presentation has added new economic data to an increasingly prominent debate about population growth, tourism, housing, infrastructure and the island's long-term economic model.