The GDP speaks of growth, but behind the figures the reality of millions of Spaniards tells a different story. A story that repeats itself every month when retirees must stretch their pensions to the limit to cover the basics, and when workers see how their salaries, despite working full days, barely allow them to face the rising cost of life. A story that reminds us that, although the economic clock has moved forward, the standard of living of many is still stuck in 2008.
The panorama is worrying: Real salaries in Spain are practically at the same level as 15 years ago, at the height of the crisis. Inflation, which has skyrocketed in recent years, has absorbed a large part of the salary improvements, leaving the average income deflated with the CPI at 10,866 euros per year in 2023, very close to the 10,737 euros in 2008according to the XIV Report «The State of Poverty. Poverty and Territory. Autonomous communities and Europe» prepared by the Network to Fight Poverty and Social Exclusion in the Spanish State (EAPN-ES). These data reflect that, although salaries have nominally increased – the average nominal income stood at 14,082 euros in 2023, 8.2% above 2022 –, the rise in prices has counteracted this progress, limiting the purchasing power of the workers.
The situation is especially difficult for those who depend on pensions. In 2023, more than 10 million pensions were distributed in Spain, of which 3.7 million, i.e.36.8%, were below the threshold of poverty. This means that more than a third of retired people, people with permanent disabilities, widows or orphans live with income that is not enough to maintain a decent life. The figures are even more alarming in regions such as Galicia, where almost half of the pensions (48.4%) are below this threshold, while in Andalusia and Murcia the percentage exceeds 40%. Even in the communities with better data, such as the Basque Country, a quarter of pensions (24.8%) do not reach the poverty line.
The report highlights that precariousness among pensioners is only part of the problem. The study reflects that, Without social assistance, more than 10.8 million people would fall below the poverty line, evidencing the fragility of a large part of the population in the face of the rising cost of life. However, the effect of these transfers is smaller than in other EU countries. While in Spain they reduce poverty by 52.6%, in Germany they do so by 64.9%, in France by 67.2% and in Finland by 70.7%. Regarding retirement pensions, although they contribute to reducing poverty by 5.4 percentage points from 0 to 64 years of age, in “2 million people”, in the communities with higher poverty rates their impact is much more limited.
The situation is not much better for the population as a whole, including those who are active. The increase in the AROPE rate (risk of poverty or social exclusion) from 26% in 2022 to 26.5% in 2023 shows that the increase in the cost of living has increased the risk of poverty to 12.7 million people. With this rebound, Spain ranks as the third EU country with the largest population at risk of poverty or exclusion, behind Romania and Bulgaria.
Like every year, the north-south dichotomy is repeated. In the south of Spain, the rate of people at risk of poverty or exclusion reaches 33.8% –higher than any EU country–, thirteen points above the northern communities, with an average of 20.8%. The regions or autonomous cities with the highest risk of poverty or exclusion are Ceuta (41.8%), Andalusia (37.5%), Melilla (36.7%) and the Canary Islands (33.8%). On the opposite side, those with the lowest risk are the Basque Country (15.5%), Navarra (17.2%), Madrid (20.4%) and Aragón (20.4%).
Added to this geographical gap are differences in the distribution of resources. The northern communities, such as the Basque Country (18,189 euros), Madrid (16,817 euros) and Navarra (16,599 euros), maintain higher average incomes. On the other hand, in regions such as Murcia, Extremadura, Castilla-La Mancha and Andalusia, the average income does not exceed 12,000 euros, reaching levels that make it difficult to cover basic monthly expenses.
The report indicates that mere economic growth is not enough to reduce poverty and warns that, despite the increase in GDP in all autonomous communities since 2015, the poverty rate has “only” decreased in ten of them. Thus, the analysis indicates that in communities such as La Rioja, Community of Madrid, Cantabria and Castilla y León there have been increases in GDP of more than 15% since 2015, but they “only” produced “minimal reductions” in the poverty rate, between 1% and 3%.
The EAPN-ES warns that the severe material and social deprivation, an indicator that measures the inability to access certain basic goods and services, has continued to increase. In 2023, a 9% of the population was in this situation, with peaks of 12.6% in Andalusia. These people have the necessary income to not be considered poor but it is not enough to maintain a decent life. Regarding the rate of population exclusively at risk of poverty (ruling out social exclusion), it amounts to 20.2% (9.7 million people) of which 41%, that is, about 4.2 million are in severe poverty.