Spain | Balearic Islands Economic Outlook 2021

Summary

The GDP of the Balearic Islands would have fallen by 18.0% in 2020 and is expected to increase by 8.0% in 2021 and 11.6% in 2022. The economy in 2021 will go from less to more with the improvement of the international environment, European funds, the progress of vaccination and the relaxation of restrictions.

Key points

• Key points:
• Further fall in GDP in the Balearic Islands in 2020, due to the collapse of tourism due to the pandemic, the greater importance of social consumption, and the maintenance of restrictions on mobility and consumption.
• Social security enrolment has not yet recovered to pre-crisis levels. There is a greater impact on employment in Ibiza and Formentera, due to the greater dependence on tourism.
• With the boost in consumption, investment and tourism, 45,000 jobs could be created between 2020 and 2022.
• Risks regarding this scenario: restrictions on travel in the markets of origin of Balearic tourism, such as the British market, the advance of vaccination, the effects on employment and the impact on the productive sector.

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