Mallorca economy grows 2.9% as Balearics growth picks up

Mallorca’s economy grew by 2.9% from April to June, beating the 2.8% rate across the Balearics. The regional figure edged up from 2.7% in the first quarter, ending five straight quarters of slowing growth. The Confederation of Balearic Business Associations (CAEB) published the figures in Palma on 23 September.

Menorca followed close behind Mallorca, while Eivissa and Formentera lost pace during spring. The Balearics also grew faster than Spain as a whole, which recorded 2.7%, and the eurozone, where growth stood at 1.2%.

Tourist numbers rose most sharply in Menorca, up 5.1% between April and June. Mallorca recorded a 2.9% increase, while Eivissa and Formentera together managed 0.5%. CAEB said tourist spending also increased as average daily spending per visitor continued to rise.

Employment reached a new high, with an average of 655,380 people registered with Social Security during the second quarter. Hiring around Easter began earlier than usual because the holiday fell across March and April, affecting the April-to-June registration figures. Applications under an extraordinary regularisation scheme for foreign nationals ran from 16 April to 30 June.

The number of registered workers rose by 2.7% in May, after 1.8% in April, and by 3.2% in June. Unemployment fell to a record low of 3.5% of the working population, down from 5% in the first quarter.

But prices climbed again. Inflation reached 3.4% in May and June, after 3.1% in April, with processed food, hotels, restaurants, leisure and culture among the areas pushing costs up. Fuel and other transport costs added to the pressure in May.

Services added a tenth of a percentage point to their growth rate and helped prevent another slowdown, CAEB said. Industry also improved by a tenth, supported by stronger overseas sales of agricultural and manufactured goods. Construction still grew by 4.1%, though more slowly, while private consumption rose 2.8% and investment increased by 3.9%.

Topics: Social affairs · Tourism · Jobs & labour · Economy

Source: Europa Press / Mallorca.com