Sales in Palma, Mallorca

Consumer habits will have to change. | Teresa Ayuga

Andrew EdePalma19/10/2022 09:18
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The latest report from the Economic and Social Council (CES) in the Balearics states that 31% of people on the islands can't afford to pay unexpected expenses because their savings are so low. The president of the council, Rafael Ballester, says that the "deterioration of family savings is progressive and affects in particular the lower and intermediate social groups in Mallorca and the Balearics".

The CES points out that 16% of people have delays in making housing payments (rent and mortgages) and that 14% cannot afford to keep the home at a suitable temperature. Ballester believes that a worsening economic situation over the final quarter of 2022 and during the first half of 2023 will compound the problems, "with a consequent weakening of the quality of life". "Consumers will have to change their purchasing habits in every way in order to deal with the current economic situation."

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The social group with high purchasing power will, as usual, have no problem and will continue to maintain its level of spending and consumption.

The report shows that income per household fell from 18,787 euros per year in 2020 to 16,867 euros in 2021 and suggests that a downward trend has continued this year even though tourism reactivation has meant job creation. However, the increase in energy costs and inflation has progressively affected families in the Balearics due to the rise in prices.

Of various other findings in the report, it is stated that one in five people under the age of 29 is at risk of poverty.