More than 30% of people living on the Balearic Islands cannot afford to live there, according to new research.
An Economic and Social Council (CES) report suggested 31% of people on the islands could not afford to pay unexpected expenses because their savings were so low.
CES president Rafael Ballester said the deterioration of family savings especially affected the lower and intermediate social groups in Mallorca and the Balearics.
According to the research, 16% of people had delays in making housing payments such as rent and mortgages, while 14% could not afford to keep their home at a suitable temperature.
despite the return of tourism to the island after the Covid-19 pandemic, income per household on the popular holiday island still fell from €18,787 per year in 2020 to €16,867 in 2021.
Ballester said a worsening economic situation over the final quarter of 2022, and during the first half of 2023 would compound the issue.
“Consumers will have to change their purchasing habits in every way in order to deal with the current economic situation,” he said.
The report showed that But it did note that increases in energy costs and inflation had progressively affected families in the Balearics.
Another concerning finding in the report suggested one in five people under the age of 29 were at risk of poverty.