Ibiza & Formentera Predicted to Achieve Full Employment in 2018, with By Far The Highest Rate of Economic Growth in Spain
- Ibiza and Formentera’s Economic Growth is the Highest in the Balearics, and the Balearics Growth is the Highest in Spain.
- Government Predicts the Islands Will Become the First and Only Area of Spain to Achieve Full Employment in 2018.
- Ibiza and Formentera have a GVA* of 17.9% on 2008. The Balearic Islands have a GVA of 9.2%. Much of Spain has experienced little or no growth in their GVA in the same period.
*GVA = Gross Value Added, a key metric used in the calculation of GDP (Gross Domestic Product). Put simply, GVA is revenue, minus the cost incurred in obtaining the revenue.
The success of Ibiza and Formentera’s economic performance compared to the rest of Spain, was brought into sharp focus this week through ministerial announcements predicting the Islands would achieve full employment status in the summer of 2018.
The Pitiuses’ unemployment rate currently stands at 5%, however with levels of growth far outstripping any other region in Spain, the Minister of Labour, Commerce and Industry, Iago Negueruela and the General Director of Employment and Economy, Llorenç Pou, feel it is only a matter of time before a zero rate is attained.
The predictions came following the latest Spanish quarterly economic bulletin, which described the Balearic recovery and performance as ‘intense’.
“The Pitiuses will touch full employment this summer” said Negueruela, “far ahead of any other area of Spain.”
Government statistics show that Ibiza and Formentera have recorded 12 consecutive quarters with growth of over 3 percent. Their report states that the Islands were the first territory in Spain to officially come out of the economic crisis, and hold a “more advanced expansive phase” than the rest of the Balearics and Spain as a whole. The economy of Ibiza and Formentera shows a growth of 17.9% on the GVA* of 2008, the whole of the Balearic Islands by 9.2%, with Spain quoted as having “barely recovered its pre-crisis position”.
Such economic success does not come without its challenges. With many businesses reporting great difficulty in recruiting and retaining staff in Ibiza over recent years, the prospect of full employment may give employers as much cause for concern as it gives the Government cause for celebration.