Minister admits economic slow down, but no recession

Booming Britain is bolstering the Balearic economy, which Balearic Finance Minister, Joan Mesquida, denied is heading for a recession, contradicting the downturn forecast by the CAEB, the Confederation of the Balearic Business Associations. Mesquida, who yesterday presented the results of an economic study of the first six months of the year, said that economic growth will balance out at around 4.02 per cent for the year, above the European Union average and that for the first time ever, the Balearics' gross national product will pass the three billion peseta mark. Mesquida admitted that the sharp decline in the number of German tourists visiting the Balearics is “logical” considering the condition of the German economy. The Minister explained that Germany's gross national product has shrunk to 1.8 per cent and that in June, wages fell by 1.5 per cent while inflation is riding at three per cent. While Germans have been hit where it hurts, Mesquida said that a number of the Balearics' competing destinations, in particular Turkey, were quick to respond to Germany's “emergency” and devalue their currency, “thus making it more attractive to visit the country.”