Tourists in Palma in autumn. | P. PELLICER

1

The chilly winds of recession are starting to blow through Spain. At the moment it is just talk. The general view is that this autumn there will be a big economic slowdown hot helped by high inflation and interest rates.

Infact, most companies are braced for it. The property market has slowed down for a variety of reasons from the war in Ukraine to higher bank charges. The joy felt by estate agents in the first half of the year is disappearing although they remain upbeat and ofcourse they have confidence in Mallorca, the brand. The jury is still out on whether the island will have a record holiday season.

To be honest I am not convinced but I am in a minority of one. If the season is a good one then the winds of recession could very well side-step the Balearics and only hit the mainland. This has happened before with the islands always doing better than the rest of Spain.

The Balearic government will be receiving a massive cash injection from the central administration in Madrid which will mean more money for public works which will put more funds into the local economy. What is clear, though, is that Britain and Germany, are having some major economic woes and this will impact on the Balearics.

If tourists from the two principal markets have less spending power than it will be a major problem. Enjoy the summer, the forecasts for the autumn are not good.