Poverty in Spain Rises Sharply in 2025 Despite Economic Growth

Spain experienced a significant rise in poverty in 2025, reflected in a 19% increase in beneficiaries of the Ingreso Mínimo Vital (IMV), a key social benefit aimed at supporting vulnerable families. According to data from the Social Security, the number of IMV beneficiaries grew by 393,892 during the year, reaching a total of 2.44 million people. This increase came despite strong macroeconomic indicators, including robust economic growth and an employment rise of over half a million workers for the fourth consecutive year.

As of December 2025, approximately 799,553 families were receiving the IMV, up by 125,800 from 2024. Over two-thirds of these families have children, with nearly one million children and adolescents benefiting from the program. The average monthly amount provided by the IMV is 483.1 euros, resulting in monthly government expenditure of 412 million euros and an annual outlay nearing 5 billion euros. The government plans to raise the benefit by 11.4% next year to better combat severe poverty, especially child poverty, underscoring the IMV’s critical role in improving living conditions.

The IMV, introduced in 2020, has supported nearly 3.4 million people since inception. It is compatible with work income, provided earnings don’t exceed a minimum threshold. Additionally, the government includes families receiving the Complemento de Ayuda para la Infancia (CAPI), a fixed amount for families with children and limited resources, within the IMV figures. Currently, out of the 799,553 beneficiary households, 314,716 receive only CAPI, while 484,792 families receive only the IMV.

Challenges to reaching more households include difficulties in proving financial situations, underreporting of income, and limited awareness of eligibility. The former Minister José Luis Escrivá had set an initial target of 850,000 households but achieving this has proven difficult due to these factors.

In a broader economic context, Daniel Traça, director general of Esade business school, highlighted Spain’s resilient economy and potential to become a stable and secure investment destination amid global uncertainties. Despite Spain’s economic resilience with a forecasted growth rebound to 2.9% by the IMF and strong tourism and immigration boosts, poverty remains an urgent social challenge.

The government’s commitment to increasing the IMV benefit, focusing on child poverty, and addressing gaps in social support reflects an awareness that economic growth alone is insufficient to reduce rising poverty levels. Measures to improve regulatory stability, structural reforms, and investments in renewable energy and innovation are also viewed as crucial steps to support sustainable long-term progress in Spain's socio-economic landscape.