Spain's Economic Growth Overshadowed by Persistent Poverty and Housing Crisis

Despite Spain's economic expansion with GDP growth recorded at 3.5%, poverty remains ingrained affecting nearly one in five Spaniards, according to a recent Oxfam Intermón report. While inequality indicators such as the Gini and S80/S20 ratios have improved notably, dropping below pre-2008 crisis levels, the overall poverty rate has barely budged from 19.7% to 19.5%. This paradox highlights the chronic nature of poverty as noted by Alejandro García-Gil, head of social protection policies at Oxfam Intermón, who stressed that sustained economic growth alone is insufficient to eradicate entrenched social hardships.

The report attributes some progress to social policies like increases in the minimum wage and pensions, which helped lift the lowest income earners by 8.3%. However, the benefits of these gains are undermined by rising living costs, particularly housing. Renters face worsening conditions, with poverty among them climbing from 31.8% to 32.6% and risks of social exclusion surging to 43.6%. In contrast, those in social housing have experienced some reductions in poverty.

Material deprivation is widespread, affecting 31.6% of the population, with many unable to cover basic needs or unexpected expenses. Energy poverty impacts 16% of households, indicating struggles in maintaining adequate home temperatures. One in three citizens cannot afford a week-long vacation, underscoring the breadth of precariousness.

Oxfam Intermón calls for robust public policies, including the urgent adoption of a universal social protection system and the Social Shield Royal Decree, which proposes universal child benefits to ease burdens on vulnerable families and the middle class alike. García-Gil concluded that only comprehensive social measures can translate Spain's macroeconomic growth into meaningful poverty reduction and greater equality.