“Balearics will not enter into recession” says Minister for Finance

PALMA
THE Balearics has not entered into recession, like the rest of Spain and, according to the Balearic Minister for Finance, Carles Manera, the region is not going to slide into recession.

The Minister claimed yesterday that the local government had been braced for the 21 percent slump in service sector activity and takings during February, as reported yesterday, and that tourism is going to continue being the driving force behind growth in the Balearics this year.

Manera explained that one of the principal reasons that the government lowered its growth forecast from 0.8 percent to between 0.2 and 0.5 percent was because of the expected down turn in service sector activity this year. “It was obvious that the service sector was going to contract,” he said. “Not only because of the slip in tourism but also because of the drop in consumer confidence among the local population,” he added. The Minister denied that the government was forced to readjust its growth forecast because the region had slipped into recession. “We're not in recession and we're not going to be,” he repeated. “It is not only the Balearic government which is claiming that we're not in recession, but the latest financial reports from major financial organisations like Hispalink, Sa Nostra and the Banca March back our position,” Manera underlined.

The service sector is also prepared for negative figures for the Easter holiday period which for many was even worse than last year with over half of the hotels closed and holiday resort activity very poor.