50% think economy will recover in 2013 in the Balearics

FIFTY per cent of businesspeople in the Balearics believe the recession will end in 2013, a study reveals.

This was revealed on a study carried out by KPMG which also shows 14 per cent say they think the economic recovery has already started.

The ‘Perspectivas Baleares’ report was presented in Palma by the KPMG Director of the Balearics, Eliseo Llamazares.

While three quarters say they will survice the economic crisis by keep costs down, one in four say they plan to reduce their staffing levels.

Although the business community in the Balearics is more optimistic than the national average, 30 per cent admitted they expect a drop in net sales this year, said Llamazares.

The economic recovery is forecast to end in the Balearics before the rest of Spain because its portfolio of ‘products’ it has to offer has not been as affected as the mainland. Sixty per cent of the Gross Domestic Product of the Balearics is related to activities linked to tourism.

He stressed the importance of pressing ahead with reforms and improvements “in our companies” so as to ensure the speedy economic recovery of the islands.

“We should not conform with the partical success of tourism, as we must continue to improve efficiency, competitiveness and infrastructures,” he said,

By John Jackson