The CTESC warns: the economy is growing, but the well-being of Catalans is stagnating

BarcelonaThe Catalan economy maintains its positive trend –with an employment rate close to the historical maximum and growth higher than that of the European Union as a whole–, but the well-being of Catalans is not progressing at the same pace. As warned by the Council of Labour, Economy and Social Affairs of Catalonia (CTESC), the stagnation of productivity, difficulties in accessing housing, and the persistence of inequalities "condition the country's development potential" and "limit the opportunities of many people".

During the presentation of the Socioeconomic and Labor Report of Catalonia 2025, the president of the CTESC, Ciriaco Hidalgo, stated that "the Catalan economy continues to show itself to be very dynamic", although he pointed to the growth of productivity and industry as the main challenges. "We do not deny that we are doing well economically, but let's focus on these elements," asked Hidalgo. Specifically, according to the report, while Catalan gross domestic product grew by 2.7% during 2025, productivity only increased by 0.2%.

Furthermore, according to the report, the progress of the Catalan economy would have been sustained mainly "by domestic demand, especially household consumption, which has grown by 3.9%, and by investment, which grew by 6%". "On the other hand, the external sector has had a negative contribution to growth, as imports have evolved above exports in a context of international trade tensions," states the report of the consultative and advisory body to the Government of the Generalitat de Catalunya. That said, the CTESC highlights that the behavior of the external sector does show a favorable evolution compared to previous years.

Housing, in the spotlight

The consultative body points out the housing situation as one of the main burdens on the well-being of Catalans. As the study shows, during 2025, the price of housing for purchase increased by 8.3%, which is three percentage points more than the previous year, while rental prices grew by 2%. Furthermore, the CTESC highlights that the purchase of a new home "already requires up to 19.5 years of available family income if 30% of income is allocated to it". "This economic effort conditions families' savings capacity, hinders young people's emancipation, and increases the risk of vulnerability," the report states. To reverse this situation, the entity advocates for continuing to promote measures aimed at increasing affordable supply, streamlining the promotion and rehabilitation of housing, and strengthening coordination between housing, mobility, and territorial development policies.

As Hidalgo explained this Wednesday during the presentation of the report, economic growth has not translated into a reduction in social inequalities either, and a significant portion of the population continues to be in a vulnerable situation. Specifically, one in four Catalans (24.8%) is in a situation of poverty or social exclusion. The growth of this figure is due to the increase in the risk of poverty rate, which has gone from 17.4% to 18.9%, while the severe material and social deprivation rate remains stable at 8.9%. The report indicates that inequalities are "especially worrying" among children: currently, 36.5% of children and adolescents are at risk of poverty or social exclusion, the highest figure in the last decade.

The budgetary execution

In order to reverse the situation, the CTESC has requested that the new regional financing model be approved. "Enough with looking at Catalonia, its economy, and its people with disdain," stated Hidalgo, who added that an "adequate" financing system is a "strategic condition for the future of the country." Along these lines, the consultative body also pointed out the low degree of budget execution by the State in Catalonia: "Competitiveness does not depend solely on announced and budgeted investments, but on those effectively executed; announcements or budgets are of no use to us if there is no capacity for execution," lamented the president of the CTESC. According to their data, in 2023, the State's execution rate was 48%, while that of the Generalitat was 89%.

Among many other factors, the report also highlights unwanted part-time work as an area for improvement, and emphasizes the gender gap: one in five women work part-time compared to one in ten men. The energy transition and demographic change are also elements that redefine the country's needs.