For years, we have been told an apparently indisputable idea: if the economy grows, society prospers. But what happens when GDP increases and, despite that, wages remain stagnant, housing becomes increasingly inaccessible and saving has become a luxury?

This is the great contradiction brought to the table by the Fènix Report: Catalonia generates more wealth than it did twenty-five years ago, but Catalans are relatively poorer than before. The figure is as forceful as it is uncomfortable.

At the beginning of the 2000s, Catalan GDP per capita was six points above the European average. Today, it is six points below. In just a quarter of a century, Catalonia has lost twelve points of relative prosperity compared with its European partners. This forces us to reconsider a fundamental question: what does economic growth really mean if this growth does not translate into better wages, greater savings capacity and a more affordable life for the majority?

Demographic growth does not guarantee prosperity

When governments announce that the economy is growing, they usually refer to Gross Domestic Product, GDP: the total value of goods and services produced by an economy. It is a useful but incomplete measure, because it does not explain how that wealth is distributed or how much prosperity actually corresponds to each citizen. That is why GDP per capita is much more revealing: it divides total wealth by the population and allows us to see whether growth reaches people’s pockets.

And this is where the great Catalan anomaly appears. According to the Fènix Report, Catalan GDP has grown above the European average over the last twenty-five years, but GDP per capita has moved in the opposite direction. The economy is larger, but individual prosperity is lower. The metaphor is simple: if a cake gets bigger, but there are more and more people sitting at the table, the slices may end up being smaller.

One of the key factors is Catalonia’s strong demographic growth, much higher than that of many comparable European regions. But more population does not automatically mean more prosperity. The report shows that territories such as the Basque Country or Aragon have improved their GDP per capita with much more moderate demographic increases. When growth is concentrated in low-productivity and low-wage sectors, population growth can put pressure on public services, make housing more expensive and reduce families’ disposable income.

The decisive variable is productivity: how much wealth an economy generates for each hour worked. Without productivity, there are no high wages, no savings, no solid public services and no sustainable prosperity. And here Catalonia also shows worrying symptoms: the Report points out that Catalan productivity has fallen from 92% to 87% of the European average in twenty-five years, placing it below industrial regions such as Bavaria, Stuttgart, Lombardy or the Netherlands. In other words: growth is not enough; we need to grow better.

The weight of low value-added sectors

The report also points to a structural problem that has accompanied the Catalan and Spanish economy for decades: a large share of the employment created comes from low-productivity sectors. Tourism, hospitality, restaurants and certain services have enormous weight in the current economic model. These are activities capable of generating a large economic volume and a great deal of apparent employment, but often with low wages, limited technological investment and little capacity for innovation. The problem is not the existence of these sectors, but the excessive dependence on a low value-added model while industrial, scientific and technological weight is being lost.

The consequences end up directly affecting paychecks and everyday life. Labour precariousness, the difficulty of retaining qualified talent and wage stagnation explain much of the feeling of impoverishment among the middle classes. And this perception is not only emotional: the data show how inflation, housing, food and energy have grown much faster than real wages. When the cost of living rises more than income, the capacity to save disappears. And when savings disappear, families’ financial security is also weakened.

Growth is no longer enough

For decades, the economic debate has focused almost exclusively on growth. But the Report forces us to ask a much deeper question: what kind of growth are we building? Not all economies grow in the same way. Some do so through innovation, advanced industry, technology and increased productivity. Others grow by expanding population and low-wage sectors. Both can increase GDP, but only one manages to generate sustainable prosperity. Catalonia remains a dynamic and entrepreneurial economy, but the indicators show clear signs that the current model is wearing out.

This is probably the great economic debate of the coming years: how to turn growth back into real prosperity. Because a country’s wealth is not measured only by what it produces, but also by its citizens’ ability to live better, save and build a stable future. At the 11Onze Community, we continue to analyse the major economic transformations that affect our daily lives, with a critical and educational perspective that helps us understand what is really happening behind the figures. Because growth does not always mean prosperity.

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