Economy

Balearic GDP growth outstrips other Spanish regions

Plenty of job creation, but pay needs to rise. | Julián Aguirre

Majorca Daily Bulletin reporterPalma18/08/2018 00:00

Balearic GDP increased ten per cent between 2008 and 2017. A report from the National Statistics Institute says that GDP growth was the highest of all regions of Spain. In 2016 the Balearics achieved an historic high in terms of growth; this was based principally on tourism. As to specific numbers, regional GDP in 2008 was calculated as having been 27,193 million euros. By 2017 it was 29,910 million.

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.