MALLORCA TODAY - Tourism won't combat Balearics recession

Coming on the back of the report which suggests that the Balearics will re-enter recession later this year, doubts are being expressed as to whether tourism, always held up as the means of creating growth, will be capable of doing so. This is because tourism to the islands has lost both productivity and competitiveness, a consequence in part of tourism that simply doesn't spend enough money.

This grim economic news is not made any better by the fact that the Balearic Government plans further drastic cuts in order to tackle the islands' deficit.

Update: The Balearic Government disputes the report which suggests that recession will return, claiming that there will be moderate growth of up to 0.5%.