Spain’s Economic Growth Masks Deepening Child Poverty and Structural Challenges

Spain's economy grew by 0.8% quarter-on-quarter and 2.6% year-on-year in 2025, with an overall annual growth rate of 2.8%, driven primarily by a 1.7% increase in public spending, according to economic analyses. However, this growth relies heavily on public expenditure, raising concerns about its sustainability amid soaring national debt and limited private sector investment. Labor productivity has declined, with a 0.2% drop per full-time worker, revealing persistent structural weaknesses in the economy.

Despite these positive GDP figures, social inequality remains a pressing issue, particularly affecting children. Reports highlight that 25.7% of the Spanish population is at risk of poverty or social exclusion, while child poverty is even more alarming, with 29.2% of children living below the poverty line. The Foessa report underscores that children and adolescents are the “great losers” of the current socio-economic model, facing precarious housing and employment conditions.

Experts call for a modern welfare state approach, including the implementation of a universal child benefit program similar to those in other European countries, to address this inequality. Critics argue that government policies focus too much on short-term public spending boosts without tackling fundamental economic reforms needed for sustainable growth and improved social mobility.

The juxtaposition of economic expansion with deepening social disparities signals urgent challenges ahead as Spain seeks to balance growth with equitable development.