Economy grows by 1.1 pc despite drop in tourism

The economy of the Balearics showed a moderate growth of 1.1 per cent in the first six months of the year, despite the drop in tourism, according to the Balearic government's half yearly report. The report was presented yesterday by Balearic finance minister Joan Mesquida. He said that the Gross Domestic Product in the Balearics grew by 0.9 per cent between April and June, compared to 1.3 per cent in the first quarter, and he pointed out that this was higher than the German economy and the entire euro zones and only slightly below the national average. And, he said, this was despite an 8.9 drop in tourism in the first six months of the year and a reduction in the number of nights spent in hotels as well as competition from other resort areas. But the figures have forced the government to revise the growth rate for the whole of 2002 which it now puts at 1.7 per cent, compared to the original rate of 2.1 per cent. Mesquida said that industry was stable, exports had grown by 34 per cent, construction was booming thanks to social housing and public works projects and there was a moderate growth in the service sector.