THE growth of the Gross Balearic Product (PIB) is expected to remain “weak” this year with real recovery not forecast until 2011, said the President of the Economic Research Centre (CRE), Antoni Riera yesterday.

Nevertheless, he added, there is room for possible “movement” in 2010 of between -0.3 and +0.3 percent.
Riera said that the regional economy had experienced a downturn of -1.4 percent in 2009 compared to a positive figure of +1.4 percent the previous year. The result was due to the fact that the worst excesses of the recession took their time to hit the islands.

Economy expert Riera said that “we have got to stop thinking in terms of the exorbitant growth to which we have been accustomed until now.” He forecast that unemployment is going to remain one of the principal scourges of the Balearics. “This year, the economy won't have the capacity to generate new jobs,” he claimed. “Construction is a driving force of the economy”, he explained “and it is definitely not going to get off the ground this year.”


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