Balearic economy keeps on growing above Spanish and Europe levels

The Spanish Economy minister has recently revised the expected economic growth in the country for 2019. The previously announced figure of 2.3% has been lowered to 2.2% due to a necessary stronger fiscal adjustment to the government’s budget – which means less growth.

Nevertheless, the updated forecast still implies a solid growth, slightly below 2018’s 2.5% but well above the European Union’s average of 1.8% and its leading economies: Germany 1.2%; UK 1.9% and France 1.4%.

Above both the European and national Spanish averages is the forecast for the Balearic Islands, which maintain a remarkable growing rhythm (above their long term trend of 2%) for already more than a year – the longest and most intense period of economic growth since Spain entered the Eurozone.

At the end of 2018, all islands together had registered a 2.6% GDP increase compared to the previous year. The Pityuses, lead by Ibiza, stand out with 3.4% growth, followed by Mallorca with 2.5% and Menorca’s 2%.

Some of the indicators of the stable and sustained growth of the Balearic economy up to 2018 are the inter-annual increase of 3% in Retail sales (twice as much as the national average) as well as in the Construction sector: +3.9%, Services: +2.6%, Manufacturing: +1.4% and Agriculture: +0.7%.

Since the end of 2015 and until now, the Balearic economy has incremented its Gross Added Value (GAV) in 10.7%, which lead to a 12.1% increase in its output, almost 3 times more than the average in Spain (4.3%).

At the moment, the forecasted GDP growth in 2019 for the Balearic Islands is 2.7%. This is based on criteria such as social security numbers, tax on manufactured products, fuel consumption, foreign trade or tourism overnight stays, that altogether will make this region one of the most dynamic Spanish autonomous regions in 2019, only outnumbered by Murcia, which has an expected growth of 2.9%.

The Balearic economy is expected to continue its expansive cycle in 2019, despite the less encouraging growth rates in most of Europe, the uncertainty caused by Brexit, the slow down in international trade or the increase in oil value.

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