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Domestic consumption has stagnated

Balearic consumption has stagnated according to BBVA report. | Jaume Morey

Majorca Daily Bulletin reporterBalearic Islands04/07/2020 10:41

The Balearic Islands are one of the few regions in Spain where domestic consumption didn’t take off at the start of the new normal, according to a report by the BBVA Research Service, which claims that consumption has stagnated in the Islands.

BBVA says information from its bank cards along with the expenditure of other clients via its dataphones, shows that in the week of June 22-28, spending with Spanish cards grew in every province except the Balearic Islands, Huelva, Madrid and Castellón.

The Balearic Islands also had the biggest decline in card spending in June with a year-on-year fall of 20%.

The lack of tourism can’t be directly attributed to the drop in spending because cards issued abroad are not included, but foreign spending has a direct impact on Balearic residents, who are financially dependent on tourism.

Traders and Restaurateurs, who opened their doors on May 11, say they’ve noticed a lack of domestic consumption and that bringing the summer sales forward made little or no difference.

Employment

Concern over an uncertain future has caused a contraction of consumption amongst Balearic residents, as unemployment increases and a high percentage of workers are affected by ERTEs.