Balearic economy is forecast to slow down with the Euro

Leading Balearic economists yesterday forecast that economic growth for this year will balance out at 3.5 per cent, slightly down on initial forecasts last month of 3.6 per cent. However, Sa Nostra bank's Miguel Alenya, said that the region's gross national product is very dependent on tourism - which in turn could make or break the economy. Although the start to the summer season has been relatively slow, with the Majorca Hotel Federation claiming over the weekend that German hotel bookings are down by as much as 30 per cent, Alenya said yesterday that his latest set of figures suggest that the market, and in turn the economy, will pick up. The economist highlighted the “good perspective” of the British tourist market. Not only are the number of British visitors to the Balearics on the rise, Alenya highlighted the important effect the strong Pound will have this summer and that consumer confidence in the UK is high - hence British visitors will be spending more while on holiday. On average a British family on holiday spends £700 per week.