Tourism, naturally enough, is key to Balearic economic growth.

Tourism, naturally enough, is key to Balearic economic growth. | Javier Coll

Majorca Daily Bulletin reporterPalma08/06/2016 00:00
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Economic growth that the regional government has been forecasting for this year is 3.5%, but a separate forecasts suggests that it will be only 2.6%. The Centre for Economic Forecasts has released its predictions for the various regions of Spain, and the Balearic figure of 2.6%, apart from being lower than what the government has been talking about, will not be as great as growth in the Canaries, Madrid and Valencia. The 3.5% forecast was given by the regional minister for employment, Iago Negueruela, and the director-general for employment and economic affairs, Llorenç Pou, at the start of April.

Across the regions together, the centre places combined average growth at 2.7% of GDP, which represents a fractional increase on its previous forecast in March. It takes into account fifteen indicators, eight of which will show improvement, especially the number of people registered with social security, the unemployment rate, overnight stays by tourists, registrations (cars and others) and the granting of mortgages.

The highest growth is forecast to be in the Canaries. Its 3.1% is just ahead of Madrid on 3% and Valencia with 2.9%. Other regions predicted to grow more than the Balearics are Andalusia, the Basque Country, Catalonia and Murcia, each with a forecast of 2.7%. The Balearics are lumped together with Castile and Leon and Castile-La Mancha. The lowest rates of growth are expected in Cantabria (1.8%) and the north African autonomous cities of Ceuta and Melilla, both on 1.1%.