Sharp decline in construction to hit whole region

Economic recession is becoming the topic of conversation in business sectors across the Balearics and commerce in Minorca is bracing itself for an economic meltdown next year. The Balearic Chamber of Commerce yesterday presented its Minorcan economic analysis and while the Minorcan economy performed better than any other in the Balearics this year, growing at a rate of 5.3 percent, next year the rate of growth will slow to a more manageable 3.6 percent. Three key factors are expected to hold economic growth back, a shrinking of the tourist and service sectors and a reduction in activity in the construction industry. There is good news for the Minorcan agricultural sector which this year suffered a 4.4 percent decline in growth, but a two percent improvement in the farming sector will not off-set the forecast five percent decline in the construction industry. The tourist industry, which grew at a rate of six per cent this year, will slow down to a rate of 3.8 percent next year.