THE Balearic Islands’ economy is set to power ahead in 2017 and 2018, new data suggests.
The islands’ GDP will surge by 4.4% this year and by 3.1% the following, according to figures from the Regional Observatory of BBVA Research.
Across Spain during the same periods GDP is expected to rise by 3.3%and 2.8%.
Balearic GDP growth this year will outstrip that in the Canary Islands (3.9%), Madrid (3.6%) and Catalunya (3.3%).
The islands’ tourist boom and construction industry are powering the surge in economic growth, according to the report.
But the study warned: “The capacity of growth in the tourist industry has not run out yet, but it is close to saturation point sometimes and in some regions like the Balearics.”
During high season, the Balearics has the highest hotel occupancy of any autonomous region in Spain, with over 90% of space taken.
The region is also predicted to have the lowest unemployment rate in Spain by 2018, with the study predicting jobless numbers will drop to 8.8%, down from this year’s figure of 11.1%.