THE lockdown hit on the Balearic economy could push the popular holiday islands into their worst ever recession according to a new report, as it remains far from certain when tourists will return in any significant numbers.
The CES Balearic Economic and Social Council analysis of the impact of the coronavirus crisis on the islands’ productive sectors paints a dire picture of a more than 22 per cent crash in Gross Domestic Product (GDP), before the end of the year and job losses in excess of 130,000 in the worst possible scenario.
The report points out that while non-tourist sectors represent nearly 78 per cent of the Balearics’ GDP, “one way or another, the bulk of economic activity on the islands is linked to tourism.”
Some 66,000 jobs in non-tourist industries could be destroyed, the study concludes, while losses could run into more than €7 billion.
The hospitality and transport sectors, which represent 22.32 per cent of the archipelago’s GDP, could experience losses of getting on for €4 billion and more than 65,000 jobs.
CES president Carles Manera did however make it clear that the forecasts do not take into account corrective measures announced by the various different public administrations.
“The numbers will very likely be corrected for the better when we see the effects of their application”, he commented optimistically.
The CES says the way out of the crisis has to divided into short, medium and long-term phases and sets out a series of proposals for “immediate action.”
For the public sector the council suggestions include investment in a property plan and speeding up the process on promotions already planned. Also in renewable energy in public facilities, in social policies and in promoting local products.
In regard to private investment, the CES refers to accelerating the bureaucratic procedures for construction, renewable energies and reactivating the sailing sector.