A chain of two consecutive quarters with negative values Gross domestic product This led to the declaration of a technical recession of the economy in Germany, the consequences of which could have an impact on the Balearic Islands for obvious reasons; German is one of the most important tourism source markets for Spain and the islands. Inflation is the main reason for the negative evolution of the EU’s most powerful economy, although, it is fair to point out, there are also positive indicators such as the level of consumer confidence. Teutonic country.
Uncertainty and anticipation.
The turmoil in the German economy does not bode well for the prospects of the tourism industry in the Balearic Islands for this coming season, whose forecasts are better both in terms of visitor numbers and their spending power compared to previous seasons. It is worth emphasizing the technical nature of the recession attributed to Germany, and the evolution of the coming months will be decisive to measure its depth. It is important to know whether we are facing a coherent phenomenon or, on the contrary, whether we are witnessing the first serious warnings of the exhaustion of the so-called European locomotive.
Germany is still digesting the exit of Angela Merkel, but also the consequences of a conflict as intense and intimate as the war in Ukraine. The duration of the military conflict, a situation that all analysts confirm, is a factor that cannot be ignored when understanding what is happening to the German giant economy, forced to reduce its economic and energy relations with Russia to a minimum. . We are seeing the first results of paying all these invoices. However, Germany’s strength was still unquestioned.