Balearic Islands Record Spain's Highest Economic Growth in Third Quarter of 2026, Ahead of Madrid

November 12, 2026

The Balearic Islands recorded the strongest estimated economic growth of any Spanish autonomous community during the third quarter of 2026, according to figures published by the Independent Authority for Fiscal Responsibility (AIReF). The archipelago's Gross Domestic Product (GDP) increased by 3.4% compared with the same period in 2025, placing it ahead of Madrid and the Valencian Community, both of which recorded growth of 2.9%.

The figures also put the Balearic Islands at the top of the regional rankings for quarter-on-quarter growth. Its economy expanded by 1.1% compared with the second quarter of 2026, while the Spanish economy as a whole grew by 0.6%.

The estimates were published by AIReF on 10 November using its METCAP methodology, which provides quarterly estimates of GDP by autonomous community.

Balearic Islands Lead Spain's Regional GDP Growth Rankings

The main result is the archipelago's estimated 3.4% year-on-year GDP growth between the third quarters of 2025 and 2026.

Madrid and the Valencian Community followed with increases of 2.9% each. The Canary Islands and Andalusia recorded 2.8%, while the national average stood at 2.7%.

Other regions reported lower growth rates. Catalonia and Murcia registered 2.6%, followed by Castilla-La Mancha at 2.5%. Castilla y León, Cantabria and Aragón recorded 2.4%, while Galicia reached 2.3%.

The lowest estimated year-on-year increases were recorded in La Rioja, Navarra and the Basque Country, at 2.2%. Asturias and Extremadura were at the bottom of the ranking, both with 2.1%.

The figures place the Balearic Islands seven-tenths of a percentage point above the national average and five-tenths ahead of Madrid and the Valencian Community.

Balearic Economy Also Grows Fastest Between Quarters

The archipelago's leading position is also evident when comparing the third quarter with the preceding three months.

AIReF estimates that the Balearic economy expanded by 1.1% between the second and third quarters of 2026. The Canary Islands followed with 0.8%, while the national economy recorded growth of 0.6%.

Several autonomous communities registered quarterly growth of 0.6%, in line with the national figure. The lowest increases, at 0.5%, were recorded in Galicia, Castilla y León, Navarra, La Rioja, Aragón, the Basque Country, Extremadura and Asturias.

The two comparisons measure different aspects of economic performance. Year-on-year growth compares the third quarter of 2026 with the same quarter a year earlier, while quarter-on-quarter growth measures the change from the second quarter of this year.

In both calculations, the Balearic Islands recorded the highest estimated increase among Spain's autonomous communities.

What the Figures Mean for Spain's Economy

The regional estimates come against a backdrop of continued growth in the Spanish economy.

According to the National Statistics Institute (INE), Spain's GDP increased by 2.7% year-on-year in the third quarter of 2026. Compared with the previous quarter, it grew by 0.6%.

AIReF uses these national figures alongside regional economic indicators and annual regional accounts to estimate the performance of each autonomous community.

Its results therefore provide a more detailed picture of how economic activity is developing across Spain, allowing comparisons between regions before complete annual regional accounts become available.

How AIReF Calculates Regional Economic Growth

The Independent Authority for Fiscal Responsibility uses a methodology known as METCAP, the Methodology for Quarterly Estimation of GDP by Autonomous Community.

The system combines three main sources of information: monthly economic indicators broken down by territory, annual data from Spain's Regional Accounts and quarterly national GDP estimates published by the INE.

By combining these sources, AIReF produces comparable estimates of quarterly economic activity for the autonomous communities.

The methodology is particularly useful because official regional accounts are published less frequently than national quarterly GDP figures. METCAP provides an earlier indication of how the different regional economies are performing, although its results remain estimates rather than definitive annual measurements.

A Strong Quarterly Result, Not a Final Annual Ranking

The latest figures place the Balearic Islands at the forefront of Spain's regional economic growth during the third quarter of 2026. However, the results should be understood within their specific reporting period.

The INE's latest annual regional accounts, published in September 2026, cover the full year 2025 and show a different ranking of economic growth. The Region of Murcia recorded the highest increase that year, at 3.8%, followed by Extremadura at 3.2%.

The Balearic Islands' latest result therefore reflects its strong estimated performance during the third quarter of 2026, rather than establishing that it has recorded Spain's highest annual growth over every measurement period.

For the archipelago, the 3.4% year-on-year increase and 1.1% quarterly expansion nevertheless represent the strongest regional results in the latest AIReF comparison.

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