Pedestrian in Palma, Mallorca

Weeks of lockdown obviously affected spending.

01-07-2021Jaume Morey

Figures from the National Statistics Institute show that household spending in the Balearics fell in 2020 to a level similar to that of 2014. Confinement for almost two months and subsequent restrictions were of course factors.

Average spending last year was 26,818 euros, a decrease of 13.6% compared with 2019. This percentage decline was greater than the national figure of 10.7% (to 26,996 euros). The decrease in spending nationwide and at regional level was the greatest since the current series of statistics started.

Hotels and restaurants suffered more than other sectors from the fall in spending - down 41% compared with 2019. Some of the toughest restrictions in the Balearics were applied to bars and restaurants, which only started to regain a degree of normality a few weeks ago.

Spending was also affected by employees being on the ERTE furlough scheme and by those who were unable to find employment. As a result, spending on non-essential items plummeted. Average spending on leisure and culture was down 30%; on clothing and footwear by 33.6%; alcohol and tobacco by 22%.

The pandemic and the restrictions meant that there were hardly any family celebrations, while homeworking contributed to a fall in spending on transport of 40%. By contrast, spending on food rose by 11%; people weren't going out. In 2019, spending on food increased by only 2.8%.

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