This is what it would cost to eliminate poverty in Spain: 1.8% of GDP

BarcelonaDespite the growth driven by the Spanish economy in terms of GDP and employment, poverty does not disappear. 8% of the population is in a situation of "extreme poverty or exclusion" – meaning they have an income below 8,147 euros per year per consumption unit – and 19.5% are "at risk of poverty", being part of a consumption unit with an income below 12,220 euros per year.

According to a study by the Ramón Areces Foundation and the Valencian Institute of Economic Research (Ivie), eradicating poverty in Spain would cost 1.8% of GDP, around 24 billion euros per year. The authors have prepared this estimate based on the income of people at risk of poverty.

The incidence of poverty has "large differences between autonomous communities" and, consequently, the amount of resources to eradicate it in each territory also diverges. In parallel, the coverage of benefits is also "uneven", and there are "significant differences" in access to aid.

The study warns that "having a job does not guarantee avoiding poverty" because 33% of people at risk of poverty in Spain are employed, although this number is decreasing. Poverty and exclusion have a "greater incidence" among women – who have a poverty rate of 20.3%, compared to 18.6% for men – and among minors.

In Catalonia, around €4 billion is needed

Catalonia has lower exclusion and poverty risk rates than the state average (5.3% and 14.3%, respectively). While in the last ten years the exclusion rate has decreased, the poverty risk has stagnated (in 2015 it was 13.9%).

There are five communities where at least one in four people are in this situation: Andalusia (27.7%), Murcia (26.7%), Extremadura (26.2%), Valencia (26%), and Castilla-La Mancha (25.9%).

However, it should be taken into account that these are indicators calculated based on the state's average income (22,943 euros annually), despite the divergence between communities. In Catalonia, for example, it is higher (25,424 euros). The authors of the study have pointed out that this methodological choice "provides a more negative image of regions with lower per capita income, and a more positive image of those with higher income".

The cost of eliminating poverty risk in Catalonia is 1.2% of the Catalan GDP, approximately 4,017 million euros based on 2025 data. Andalusia is the territory where eliminating poverty risk would require more resources in relative terms – 3.9% of the gross domestic product – while the Basque Country is where it would be most economical in terms of GDP (0.6%).

Finally, the Ramón Areces Foundation and Ivie have developed an index that ranks the autonomous communities into five groups, based on how the population at risk of poverty and exclusion has evolved in each. The scientists have taken into account indicators such as the rates already mentioned, the income needed to eliminate poverty, and the inequality among the population at risk of poverty. Catalonia is among the communities with "better results", along with the Basque Country, Aragon, and Cantabria, while Andalusia, Valencia, the Canary Islands, and Murcia are the ones that fare worst. Madrid is in the second group, which includes communities with "sustained" improvements between 2015 and 2023.