No, Poles are not richer than Spaniards — at least not yet

Are Poles richer than Spaniards? GDP per capita, average salary and PPP data show a more complex reality than the headlines suggest.

English · Original discussion in Spanish · Published

Poles richer than Spaniards: the data that debunks the myth

While some headlines proclaim that Poles have overtaken Spaniards in wealth, nominal GDP per capita figures show a different reality: Spain records 34,210 euros compared with Poland's 24,680. The average salary is also higher in Spain (33,700 euros). However, the debate heats up when adjusted for purchasing power, where Poland is close to a technical tie.

Nominal GDP doesn't lie

According to Datosmacro data, Spain's GDP per capita is 38% higher than Poland's in nominal terms. Spain's public deficit stands at 2.39%, compared with Poland's 7.30%. In wages, the Spanish average reaches 33,700 euros a year, while the Polish one falls below that. These are the figures used by the mainstream analysis to argue that Spain's average wealth remains higher.

The PPP factor: a technical tie?

Those who defend the thesis of Poland overtaking Spain rely on purchasing power parity (PPP). According to the International Monetary Fund, Poland's per capita income adjusted for PPP is 58,560 dollars, slightly above Spain's 58,350. This means that, with Poland's cost of living, money goes further. One example: an Airbnb in Warsaw for 1,300 euros a month, bills included — unthinkable in Madrid.

Debt and housing: the cost of living

Spain's public debt is double Poland's (101% versus 60% of GDP), and private debt is also far higher (117% versus 70%). In the property market, prices in Poland rose 4% year on year, compared with 12% in Spain. These indicators suggest that, although nominal incomes are higher in Spain, savings capacity and cost of living may favour Poland.

The open question is whether wealth is better measured by what you earn or by what you can buy with it. Far from being settled, the debate reflects two divergent economic models within the European Union.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (18 replies).

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