Spanish Economic Recovery Leads to Higher Wages

Spanish Economic Recovery Leads to Higher Wages

The Spanish Institute of National Statistics has released data that shows Spanish wages have risen by almost 2%. This is the first rise of this magnitude in over a decade.

The cost of living in Spain is stable and the average gross salary in the final quarter of 2014 was €2,026.14 per month. This was just under 2% higher than it was for the last quarter of 2014.

Wages are slowly increasing in Spain

This rise is the largest rise in wages seen since 2000 when this particular statistic was reported annually. When you add in the negative inflation which has pushed down the consumer price index by 0.8% it looks like Spanish workers have a 2% rise in their spending power.

Madrid is where the wages are currently the highest, followed by the Basque Country and Catalonia. Valencia is where wages are currently the lowest in Spain. There the wages are almost 700 euros less than in Madrid.

In terms of percentage rises the biggest wage rise happened in the Canaries. They experienced a 4.6% wage increase. The Castilla y Leon region saw the second highest with 2.7%.

The debt ratio for Spain also went below 99% in the final quarter of 2015 according to the Bank of Spain. This was a great indication that the plans to reduce public borrowing are working. There is still a large average debt load per head in the country but this is expected to fall during 2016.

The conclusion of this report confirms that Spain is recovering in all sectors especially in the property market where buying property in Spain has seen continual growth over the past year and looks like it will continually do so, not just from foreign buyers but by Spanish nationals buying property again in spain.