He highlights a discrepancy between general economic growth and family incomes and points to a further growth in income derived from tourism but also to the fact that the tourism industry does not distribute this wealth well.
A somewhat gloomy financial outlook for households in 2024 is shared by the technical director of the Fundació Impulsa, Antoni Riera. This January, he notes, there is inflationary pressure from food products such as eggs and milk, even if energy prices are in check.
Riera predicts economic slowdown in 2024. Balearic GDP will continue to grow but at a slower rate than in 2023 - by half. (In June, the Balearic government estimated 5.2% growth for the whole of 2023.)
"Measures adopted by central banks, such as the increase in interest rates, have delayed effects and it is still too early to detect the soft landing they intend. At the beginning of the second quarter we will be in a position to know the impact of these measures."
Monserrat, a member of the Economic and Social Council in the Balearics, is joined by consumer associations in arguing that there is a lack of basic budgetary economic culture in the Balearics. "We have to learn to put value on waste. It is dysfunctional to base our well-being on consumption, but we also don't know how to consume."
This has especially been the case over the festive period, when there has been too much unnecessary spending. Alfonso Rodríguez, president of the Consubal consumers association, says: "We have been quite irresponsible this Christmas and have bought more than we need. We can never be against domestic consumption because it is the driving force of the country, but we urge people to consume wisely and responsibly."
He anticipates a January with more hardships and, in general, a more difficult first part of the year, largely due to a lack of judgment when shopping for the Christmas holidays. In this regard, he is critical of business, which has "encouraged us to buy more things and so be happier". The happiness is linked to consumption. But it comes at a cost.
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