Balearics economy should ride the crisis

Economists do not envisage the Balearic economy being significantly affected by the international crisis. Sa Nostra bank's top economist Miguel Alenya said yesterday that, year-end figures will show an economic growth of 3.2 per cent in the Balearics. Armed with the financial figures for the second quarter, Alenya said that the Balearics' economy has a “solid base” and that all the indications point to demand for Balearic holidays maintaining its normal momentum because the region is a “safe” destination. Alenya believes that the construction industry, which has enjoyed growth in the region of 6.9 per cent between May and August, is strong enough to resist the international crisis despite signs of a slight slow down over the winter. Balearic economic growth for this year is forecast to be 3.2 per cent, above the European Union average but down on last year's figure. Looking ahead to next year Alenya, who warned of a possible Balearics recession at the start of the year, said that with regards to 2002 “there are neither signs of the economy bottoming out nor a recession.” The Balearic industrial sector has posted healthy growth figures of 2.9 per cent this year and the service sector has experienced a three per cent growth.