Palma.— Economy and Statistics Director Joana Perelló said that the revision had come as a result of the Gross Balearic Product having contracted by 0.2% in the second quarter of the year.

Perelló said that although the data “isn't good” when compared to figures for some other regions of the country, the Balearics is nearing 0% at which point “the Islands will begin to generate employment.” The director described the economy contraction of 0.2% in the second quarter of the year as “quite gentle” in comparison with the country as a whole where the downturn had been registered at 1.3%.

Despite the lower forecast for this year, Perelló insisted that economic activity will increase in 2013 by 0.3% “thanks to the efforts being made by the Partido Popular government towards this end.” Perelló claimed that Ibiza and Formentera will have greater economic growth next year compared to Minorca and Majorca. She meanwhile gave assurances that the results of the tourist season are “positive” as figures have improved in all areas of the tourism industry with the exception of cruise touirsm which fell this year by 22 percent.

The director said that export activity has been 24.6% more positive this year due to sales of shoe wear, oils and cosmetics.