Difficult times

Majorca is allegedly experiencing its worst recession ever. Unemployment is at a record high and the local economy is in recession. But there isn´t much evidence of this state of affairs on the streets of Palma. There are few empty shops and consumers appear to be spending. Restaurants are busy even though prices are still high. In some parts of the city you would have never dreamed that the economy was in recession. Now, if you speak to any retailer they will tell you that things are bad but on the surface little has changed. Big and expensive cars almost pass unnoticed and the more expensive shops continue to prosper. So is Majorca deep in recession? I suspect that there is still money about. Afterall, until recently the local economy was booming and households are digging into their savings to maintain their standard of living; the unemployment rate obviously does not take into account all those people who are registered as being without a job but still continue to work illegally. Then there is the undeclared money. Although the taxman has attempted a crackdown there is still plenty of “black” money washing around the island. So is the recession real? Well obviously times are hard but they are probably not as bad as the official figures say. Thankfully this island has its tourist industry which continues to generates millions for the local economy. We are very lucky; tourism continues to shield us from the more severe ill winds.