BBVA Research expects 8.3% economic growth for the Balearic Islands this year, the second highest among Spanish regions, and 6% in 2023, the highest.
The region’s growth in 2021, according to the bank, was 10.5%. The trend will therefore continue this year, the Balearic Islands behind only the Canary Islands (9.6%). As for useBBVA forecasts an increase of 5.7% in 2022 and 5.5% in 2023.
Overall, the bank expects regions across the country to maintain their growth trajectory in 2022, with particular positive impacts for those regions most linked to tourism and European recovery funds.
The first quarter report indicates that the recovery of foreign and urban tourism will be “a differential factor for the growth of the islands, Madrid and Catalonia, which will all be in the leading group”.
“The control of pandemic, the return of foreign tourism, the arrival of European funds and the gradual elimination of production bottlenecks characterize the regional scenario. Tourist regions will experience the strongest growth, but those in the north will also reach historically high numbers.
“In 2023, the economy will gradually slow down as it returns to normal, although the normalization of city tourism will continue to benefit Madrid over the next two years.”
The BBVA forecast for 2022 is lower than that of the Balearic Government, which examined more than ten percent. Growth forecasts have been moderated somewhat due to the impact of Omicron (especially in the first quarter) and inflation.