The economy in the Pitiusas Islands closed the second quarter of the year with a year-on-year growth of 21.2%, which is six points higher than in the first quarter, when it stood at 15.2%. In the Balearic Islands as a whole, growth was 14.1%, which has gained some speed compared to the January-March period, when this increase was 13.9%, according to the latest report presented by the employers’ association CAEB. One aspect to underline is that this slight acceleration is registered in all sectors of the economy, given that services have gone from 15.4% in the first quarter to 15.5% in the second quarter thanks to intense tourist activity, industry has gone from 6.1% to 7.8%; and construction from 4.4% to 5.6%.
This momentum in the economy, as highlighted by the aforementioned business organization, has shortened the gap that still exists between the Gross Domestic Product that the islands showed before the pandemic and the current one, and currently stands at 7.1% below 2019. On this point, it should be noted that industry and construction already show higher levels than they did before covid.
Consumption shows a remarkable increase, although in this case with a loss of speed in relation to the first quarter of the year. During the period April-June of this year it grew by 13%, although between January and March it grew by 13.3%. In the case of investment, momentum was gained, rising from 5.8% in the first quarter to 6.9% in the second quarter, despite rising costs.
European economy slowing
Despite the above, the president of CAEB, Carmen Planas, recalled that the main European economies have begun to slow down, affected by inflation and the impact of the war in Ukraine, which generates the corresponding uncertainties once the high season on the islands concludes.
One aspect to note is that Mallorca had the least positive data, given that it closed the second quarter of the year with an economic growth of 13.1%, down from 14% in the first quarter. In the case of Menorca, the interannual evolution has been positive, 14.2% between April and June, improving the 12.4% of the first three months of the year.
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