Carmen Planas, the president of the Confederation of Balearic Business Associations (CAEB), is warning that the conflict in Catalonia could have a negative impact on Balearic economic growth.
The CAEB forecast for this year, she says, is 3.3%, but this will depend on external factors, which include "territorial tensions". "If there is insecurity, this can affect investment and, in turn, the growth and stability that we currently have in the Balearics."
The "tensions", the consequence of the situation in Catalonia, "can have an impact on business confidence and investment, as legal certainty and stability are necessary to foster this confidence". Planas admitted that at present "it is difficult to know what might happen".
Over the first half of this year, growth in the Balearics had started to adopt a steady trajectory - "as though it was on autopilot " - which will contribute to the 3.3% forecast for the year. This will be above an anticipated national average of 3.1% and a European Union average of 2.3%. It had been expected that growth in the Balearics would begin to level out this year, having hit the heights of over four per cent in 2016.
During the second quarter of 2017, the CAEB reports a 3.8% growth in investment; construction registered the same growth. Consumption rose by 3.3%, as did services (including, therefore, tourism), while the lowest growth - one of 2.4% - was in industry. By island, Ibiza and Formentera registered 3.4% GDP growth in the second quarter, while it was 3.3% in Majorca and 2.7% in Minorca.
Where construction is concerned, there have been concerns voiced about a slowdown in 2018. This has nothing to do with Catalonia but with the ending of much hotel redevelopment and little residential development in the pipeline.