Spain’s Purchasing Power Drops 6.4% Since 2009, Second Worst in EU
A viral chart shows Spain’s purchasing power fell 6.4% from 2009 to 2023, trailing only Greece’s 21.0% decline, while Bulgaria surged 119.7%.
English · Original discussion in Spanish · Published
Only Greece trails Spain in purchasing power loss since 2009, according to a table shared on social media
Between 2009 and 2023, Spain’s purchasing power dropped by 6.4%, according to a comparative table circulating online, a figure only worsened by Greece’s -21.0%. The table, which covers EU countries, places Spain near the bottom, behind France (-2.1%) and Italy (-5.0%), and far from Bulgaria’s 119.7% or Romania’s 80.0%. The paradox is uncomfortable: partners starting with lower incomes gained the most, while mature southern economies barely improved or even regressed.
What purchasing power exactly measures and why Spain fares so poorly
The indicator compares salary evolution with price changes. If wages rise less than the Consumer Price Index (CPI), purchasing power evaporates even if nominal salaries grow. In Spain’s case, wage stagnation over the last decade and a half—with minimal increases concentrated in recovery years—clashes with inflation that accelerated sharply after the pandemic. The result is this -6.4% that places the country just ahead of Greece.
The most repeated reading in economic analyses points to internal devaluation as an adjustment mechanism: instead of devaluing the currency, labor costs were reduced to gain export competitiveness. It worked for external sales, but left employees paying the bill. Some argue that without this adjustment, the country would have collapsed; against this is the argument that the cost was always borne by the same people.
Income tax that eats salary increases and already-paid housing
A calculation circulating among taxpayers suggests that the real loss is around 50% for those who have had nearly frozen salaries since 2009. The explanation: what little the salary rises is taken by the pogre nature of Spain’s personal income tax (IRPF), which taxes each nominal increase as if it were a real income improvement. Those with paid-off homes feel it less, but they feel it.
The Greek figure serves as a mirror. The cuts in public spending and the pension scissors applied by Athens after the bailout explain its -21.0%. The hovering question is what would happen if this adjustment were repeated here. No one wants to answer it aloud.
Countries that did gain purchasing power
Eastern Europe dominates. Bulgaria (+119.7%), Romania (+80.0%), Lithuania (+64.8%), and Latvia (+61.1%) lead the table. These are economies starting from very low salaries that have strongly converged thanks to European funds, industrialization, and entry into the single market. Poland (+48.4%) is the most cited case: its visible real estate and automotive presence in Spain has become apparent in coastal areas.
At the other end, Sweden (-0.6%), France (-2.1%), Italy (-5.0%), Spain (-6.4%), and Greece (-21.0%) close the list. Germany, with +16.3%, remains in an intermediate zone that does not invite pride. The complete picture shows an EU at two speeds: those converging upward and those falling behind.
With these numbers, the question is not who loses more, but how long an economy can sustain itself that impoverishes its employees while boasting of growth.
Between 2009 and 2023, Spain’s purchasing power dropped by 6.4%, according to a comparative table circulating online, a figure only worsened by Greece’s -21.0%. The table, which covers EU countries, places Spain near the bottom, behind France (-2.1%) and Italy (-5.0%), and far from Bulgaria’s 119.7% or Romania’s 80.0%. The paradox is uncomfortable: partners starting with lower incomes gained the most, while mature southern economies barely improved or even regressed.
What purchasing power exactly measures and why Spain fares so poorly
The indicator compares salary evolution with price changes. If wages rise less than the Consumer Price Index (CPI), purchasing power evaporates even if nominal salaries grow. In Spain’s case, wage stagnation over the last decade and a half—with minimal increases concentrated in recovery years—clashes with inflation that accelerated sharply after the pandemic. The result is this -6.4% that places the country just ahead of Greece.
The most repeated reading in economic analyses points to internal devaluation as an adjustment mechanism: instead of devaluing the currency, labor costs were reduced to gain export competitiveness. It worked for external sales, but left employees paying the bill. Some argue that without this adjustment, the country would have collapsed; against this is the argument that the cost was always borne by the same people.
Income tax that eats salary increases and already-paid housing
A calculation circulating among taxpayers suggests that the real loss is around 50% for those who have had nearly frozen salaries since 2009. The explanation: what little the salary rises is taken by the pogre nature of Spain’s personal income tax (IRPF), which taxes each nominal increase as if it were a real income improvement. Those with paid-off homes feel it less, but they feel it.
The Greek figure serves as a mirror. The cuts in public spending and the pension scissors applied by Athens after the bailout explain its -21.0%. The hovering question is what would happen if this adjustment were repeated here. No one wants to answer it aloud.
Countries that did gain purchasing power
Eastern Europe dominates. Bulgaria (+119.7%), Romania (+80.0%), Lithuania (+64.8%), and Latvia (+61.1%) lead the table. These are economies starting from very low salaries that have strongly converged thanks to European funds, industrialization, and entry into the single market. Poland (+48.4%) is the most cited case: its visible real estate and automotive presence in Spain has become apparent in coastal areas.
At the other end, Sweden (-0.6%), France (-2.1%), Italy (-5.0%), Spain (-6.4%), and Greece (-21.0%) close the list. Germany, with +16.3%, remains in an intermediate zone that does not invite pride. The complete picture shows an EU at two speeds: those converging upward and those falling behind.
With these numbers, the question is not who loses more, but how long an economy can sustain itself that impoverishes its employees while boasting of growth.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (24 replies).
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