Canary Islands' GDP Grows Faster Than Any Other Region in Spain
The archipelago is the autonomous community that posted the strongest growth in the third quarter of 2025, with a 3.5% year‑on‑year increase, according to the Independent Authority for Fiscal Responsibility (AIReF).
The Canary Islands’ economy expanded 3.5% year‑on‑year in Q3 2025, making it the fastest‑growing autonomous community in Spain. Compared with the previous quarter, the increase was 0.6%, matching the national average, as reported by AIReF on Monday.
In the rest of Spain, Cantabria, Andalusia, the Balearic Islands, Madrid and Catalonia also posted quarterly growth above the national average (0.6%) during the same period.
The independent body headed by Cristina Herrero released its quarterly GDP estimates for the autonomous communities using its own Quarterly Estimation Methodology for Regional GDP. These estimates are produced after the National Statistics Institute (INE) publishes Spain’s provisional quarterly GDP figures. On 29 October 2025, the INE released the Q3 data, showing that the Spanish economy grew 0.6%, two tenths lower than the previous quarter. The slowdown was driven by the external sector, which subtracted six tenths from growth, while domestic demand added 1.2 percentage points during the summer months.
As previously noted, the economies of Cantabria, Andalusia, the Balearic Islands, Madrid and Catalonia grew above the national average, each recording a 0.7% inter‑quarterly increase.
Conversely, the regions of La Rioja, Castile and León, the Canary Islands, Navarre, Extremadura, the Valencian Community and Aragon grew exactly at the national average of 0.6% inter‑quarterly.
Below the average, Murcia, Asturias, the Basque Country and Galicia posted 0.5% growth, while Castile‑La Mancha recorded a 0.4% inter‑quarterly rise.
Canary Islands Lead in Interannual Growth
Nationally, Spain’s year‑on‑year GDP growth fell to 2.8% in Q3 2025, two tenths lower than the previous quarter, according to INE data.
AIReF’s interannual analysis shows that the Canary Islands have the highest regional GDP growth at 3.5%, followed by Andalusia (3.2%) and the Balearic Islands (3.2%).
The weakest growth was observed in the Basque Country (2.2%), with Asturias close behind at 2.3%. Next in line were Galicia, Cantabria, Castile and León, and Extremadura, each registering 2.5% growth.