Businesses have closed in Mallorca

Businesses have closed, but there is some sign of recovery.

18-07-2021Pilar Pellicer

Figures from the Balearics Statistics Institute show that there were 44,277 active businesses in June, an increase of almost 1,500 compared with last year but down 5,000 on June 2019. The figures point to a gradual recovery for an economy which has a significant number of temporary businesses that are created for the tourism season.

The president of the CAEB Confederation of Balearic Business Associations, Carmen Planas, says that they reflect the impact of the tourism season at a time when "prospects were good". The increase of around 3.5% shows "the commitment of the private sector to economic recovery".

The government's directorate for the economic model agrees that the figures point to a recovery trend. The directorate notes that 2019 was a record year in business and employment terms, so reaching figures for that year would be very difficult given the current situation.

Together with other indicators - business confidence, social security registrations and unemployment - they do point to a "clear change in trend".

However, concerns have arisen in recent weeks. Planas observes that the economic climate a few months ago invited a reactivation of businesses. The situation has changed since then, and the recovery - in her view - is "insufficient".

Any recovery has to be considered in the context of businesses which have decided not to open this summer and those which have closed for good. The Balearic economy fell by 23% in 2020.

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