The majority of the Canary Islands’ are facing financial hardship, with approximately 1.47 million people, or more than 544,000 households, reporting difficulties with making ends meet.
According to recent data from the Canary Islands Institute of Statistics (ISTAC), while the struggle against poverty has improved compared to the aftermath of Spain’s economic crisis 10 years ago, only one third of the population reports being comfortable with their financial situation.
The situation remains dire for a significant portion of the population.
Of the nearly 1.5 million facing difficulties, 224,704 people, living in 88,413 households, experience severe financial struggles, representing nearly 10% of the archipelago’s population in 2023, Canarian Weekly reported.
Women on the islands are also facing greater financial hardship compared to men, the data has revealed. While over 94,000 men report severe difficulty in managing expenses, the figure rises to 130,580 for women, revealing a stark gender disparity.
However, this imbalance reverses in less severe categories of financial difficulty, where men slightly outnumber women.
The ISTAC data produces a mixed outlook, with the percentage of residents facing “difficult” or “somewhat difficult” financial circumstances has shown a slight increase.
However, in more positive news, the proportion of people experiencing severe financial hardship has declined over recent years.
Those who report being able to make ends meet with “great ease” have remained stable over the past seven years, albeit with a slight dip of 0.3%.
Meanwhile, those managing with “some ease” now account for 22.45% of residents, a figure that has also declined.
While the data shows modest progress in alleviating poverty, the fact that a majority of Canary Islanders still face financial difficulty emphasises the urgent need for continued socio-economic reforms.
The Canary Islands is experiencing a housing crisis due to a number of factors, including high demand from foreign buyers in popular areas, holiday rentals, unsustainable prices and high costs of living.
The local government is now looking for EU support amid the crisis and to limit foreign house purchases. It is hoping the EU will look into potential restrictions on the purchases of residential properties by non-EU citizens and non-residents.
According to data from Spain’s College of Property Registrars, roughly 33.69% of homes in the Canary Islands were purchased by foreign buyers.
The Canary Islands saw over 16 million visitors in 2023, which was a record year for international tourist arrivals. This was a 13% increase from the previous year.
As of 12th September, 2024, there were 43,366 active Airbnb listings, while a typical host income (annual revenue) was 21,000 euros (nearly £17,400) according to Airbtics.