30% of families cannot afford unexpected expenses

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The latest report from the Economic and social council (CES) in the Balearic Islands indicates that 31% of the inhabitants of the islands cannot afford to pay unexpected expenses because their savings are so low. Chairman of the Board, Rafael Ballester, says the “deterioration of family savings is progressive and particularly affects lower and middle social groups in Mallorca and the Balearic Islands”.

The CES recalls that 16% of people are late in paying for housing (rent and mortgage) and that 14% do not have the means to keep housing at a suitable temperature. Ballester believes that a deterioration of the economic situation during the last quarter of 2022 and during the first half of 2023 will aggravate the problems, “with a consequent weakening of the quality of life“. “Consumers will have to change their buying habits in every way in order to cope with the current economic situation.”

The social group with high purchasing power will, as usual, have no problems and will continue to maintain its level of expenditure and consumption.

The report shows that income per household fell from 18,787 euros per year in 2020 to 16,867 euros in 2021 and suggests that a downward trend has continued this year even if revival of tourism meant job creation. However, rising energy costs and inflation have gradually affected Balearic families due to rising prices.

Among various other findings of the report, it is stated that one in five people under the age of 29 are poverty risk.

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