Humphrey Carter08/08/2014 00:00
TW
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After five years of contraction, the Balearic economy is forecast to grow by 1.1 percent over the course of this year, experts said yesterday. The Balearic Confederation of Business Associations (CAEB) yesterday presented the economic results for the first quarter of this year and, based on the latest financial data, Balearic GDP is currently forecast to grow by 1.1 percent this year.

The last time the Balearic economy showed any sign of growth was in 2008, when GDP rose by 1.3 percent while in 2009, it shrunk by three percent.

And, it appears that the local economy is back on the right track. Looking ahead to 2015, CAEB President, Carmen Planas, announced that the current forecast points to even stronger growth in the region of between two and 2.2 percent - mirroring the national average.

According to the business sector, the driving force behind economic growth this year are the island of Ibiza and Formentera where the local economy is expected to grow by 3.7 percent, Majorca is not going to perform quite so well with growth set at around 0.8 percent while Minorca is going to struggle with the economy expected to contract by 0.5 percent.