Carles Manera, a former Balearic finance minister and now president of the Balearic Economic and Social Council, says that the growth in GDP over the past four years has been spectacular because of the strength of tourism activity. The resilience of the economy is a reflection of the region's economic specialisation.
Professor of applied economics at the University of the Balearic Islands, Antoni Riera, echoes Manera's words. "Balearic economic recovery has been greatly superior to that of other regions because of an economic model based on the services sector."
The two agree that the economic key for the future of the islands is income per head of population. Manera notes that this indicator is less positive. Recession diminished spending power and produced stagnation and contraction. "For the economy to grow there also has to be spending power; economic welfare and social indicators need to improve."
Riera adds that GDP growth has led to a significant increase in labour market activity - more than 20% growth in employment. The volume of jobs has gone up, but their value has not. Per capita income in 2008 was 25,717 euros. At the end of last year it was 25,772 euros. The rise was therefore negligible (0.2%) compared with the 10% GDP growth.
