Inflation, bloating GDP with public spending and immigration and hidden unemployment are the ingredients of the so-called “economic miracle” of the Sánchez administration.
Spain closes 2025 with the consumer price index (CPI) rate above the euro area average and higher than all the large economies in Europe.
Cumulative inflation, measured by CPI, during Sánchez’s term reached 24.8%. Housing and food have risen by almost twice as much as the headline CPI.
The reality of Spain is that the loss of purchasing power and the impoverishment of Spaniards are the result of years of interventionist policies.
Home purchase priceshave soared by more than 38%, housing-related expenses (rent, utilities, maintenance) have risen by more than 30%, and food prices are up around 38%.
The “real shopping basket” studies find increases of between 40% and 60% in basic products between 2019 and 2025, showing that inflation in essential goods has been far higher than the official average.
Between 2019 and 2025, realwagesin Spain have fallen by 0.3%, according to CaixaBank, but the picture is much worse if we look at net real wages, which have fallen by more than double because the government refused to index taxes to inflation and has sharply increased the fiscal burden of families and businesses.
Government propaganda claims that productivity and GDP per capita “grow” by using the pandemic collapse as the starting point of the series. In other words, because Spain fell more than anyone else, now it “grows.” The reality is very different.
Labour productivity per occupied person, compared with the EU average, has fallen from 99.8% in 2018 to 97%. Bouncing back is not growing, and even less so when the government is bloating GDP with government spending and immigration.
A quarter of Spain’s net real GDP gain over 2019‑2025 is directly explained by higher public consumption, and more if you include EU‑funded public investment and subsidies classified under other items, according to CaixaBank Research.
Source: ZeroHedge News
