SO the local economy will be out of recession by next year, according to the Balearic government. This same Balearic government had claimed, a few months ago, that the local economy would be back in the black by the end of this year. So, the green shoots, are being delayed again. The local government quite rightly said that their upbeat economic assessment depends on numerous factors and they were still not convinced that the Balearics would be out of the woods by next year.
They are right to be cautious because Spain continues to have series economic problems, not least the fact that 4.5 million people are without a job.
Until there is a complete recovery in the tourist industry and to a lesser extent the real estate sector, I can´t see the Balearics making a full recovery. Despite reports of an excellent end to the summer season I am still not convinced that it has been a great season. Probably not as bad as some had feared but no-way good enough to propel the Balearics out of recession. It is going to be a long hard winter and I can see the state of the local economy being one of the key issues at the next local elections in May. The economic track record of the present local government is not great, let us just hope that their predictions are right.