Catalonia’s economy is growing, yet this prosperity fails to reach a significant portion of its population, a new Catalan government report reveals. The study highlights a troubling paradox: positive macroeconomic indicators contrast with wealth increasingly concentrated in the hands of the richest 1%, stagnating wages, and one in three children now at risk of poverty.
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The findings were published in the 109th issue of Nota d’Economia, the official journal from the Generalitat’s Department of Economy and Finance, titled ‘Towards a Model of Shared Prosperity’. The report was launched on Monday at Barcelona’s historic Recinte Modernista de Sant Pau, an event attended by leading economic experts.
“We need an integral economic policy project to connect all areas of the welfare state,” stated Alícia Romero, the Catalan Minister for Economy and Finance, who presented the volume.
The government’s analysis, supported by twelve separate articles within the journal, paints a picture of a two-speed economy, a reality previous Barna.News analysis has highlighted, where economic growth masks a widening social gap.
The Widening Chasm: Wealth and Wages
The report’s data dramatically illustrates a shift in wealth distribution. Research by Olga Cantó, a professor at the University of Alcalá, shows that between 2005 and 2022, Spain’s net wealth grew by 20%. However, this growth was far from evenly distributed. The richest 1% of the population doubled their assets during this period, while the poorest 50% saw their net wealth cut in half.
This growing wealth disparity is compounded by stagnating purchasing power for the average worker. According to the study, detailed in reports by Europa Press, the cost of living in Catalonia surged by 26.8% between 2014 and 2023. Over the same period, average wages increased by only 25.3%, resulting in a net loss of purchasing power for many families.
The human cost of these economic trends is stark; the report confirms one in three children in Catalonia is at risk of poverty or social exclusion. This reality has spurred the government to find ways of targeting housing and cost of living pressures as a matter of priority.
A Generation Locked Out of the Housing Market
A primary driver of this inequality, particularly for younger generations, is the prohibitive cost of housing. Héctor Sala, a professor at the Universitat Autònoma de Barcelona (UAB), warns in the report:
“Soaring property prices put the sustainability of shared prosperity at risk.”
The statistics are grim. In just two decades, home ownership among Catalans under the age of 35 has collapsed, falling from 66% in 2002 to just 31.8% today. This barrier to accumulating assets has left younger people significantly disadvantaged compared to previous generations, thus fuelling intergenerational inequality. The housing crisis remains a political flashpoint, with Catalonia’s regional parties recently deciding to challenge the national housing law in the Constitutional Court.
The report also delves into the social consequences of economic precarity, noting a rise in mental health problems. This particularly affects women and young people in low-income neighbourhoods and directly links to job insecurity, stress from heatwaves in inadequate housing, and lack of sleep.
Social Safety Nets Under Strain
The study also critically examines the effectiveness of the region’s social safety nets. An analysis by Ivàlua, the Catalan Institute for Public Policy Evaluation, found that the Guaranteed Citizenship Income (RGC) reaches only 53.1% of households living in severe poverty. Furthermore, 66% of families with children remain in poverty even after receiving the benefit.
Experts contributing to the report propose a significant overhaul, suggesting better coordination with Spain’s national Minimum Basic Income (IMV) and, crucially, allowing recipients to combine the aid with employment income to provide a more stable route out of poverty.
A Global Problem with Local Consequences
The presentation featured insights from Branko Milanović, a globally recognised authority on economic inequality and a former lead economist at the World Bank. He contextualised Catalonia’s challenges within a global trend, warning that while inequality between countries is decreasing, it is growing dangerously within wealthy economies.
Milanović argued that this internal division fuels social dissatisfaction and the rise of “authoritarian populism.”
Francesc Trillas, Catalonia’s Secretary for Economic Affairs, echoed this, noting that while the middle classes in Asian countries have seen their incomes grow exponentially, workers in Europe, the US, and Japan have been “stagnating for years.”
Given this sobering diagnosis, the Catalan government has positioned “shared prosperity” as its central goal. The report concludes that only an integrated approach-one that connects labour, housing, tax policy, and social protection-can begin to reverse the trend and ensure economic growth benefits all of society, not just the few at the top.
