25% of Canary Islands residents lived on less than €9,800 in 2022


  • 30-10-2024
  • Business
  • (INE) National Institue of Statistics
  • Photo Credit: CW
25% of Canary Islands residents lived on less than €9,800 in 2022

Recent data on income distribution within the Canary Islands reveals that one in four residents earned less than €9,870 annually in 2022. The situation is even more pronounced among the foreign population, with nearly 47% living on incomes below this threshold, according to the latest figures from the Wealth Distribution Atlas by the National Institute of Statistics (INE).

The INE's report provides a comprehensive overview of income levels across various territories, highlighting both the highest and lowest earners at the national and district levels.

In the Canary Islands, the municipality of Santa Brígida in Gran Canaria tops the list with the highest average income at €17,702. Other notable high-income areas include El Rosario in Tenerife (€15,916), San Sebastián in La Gomera (€13,324), Breña Baja in La Palma (€15,378), Valverde in El Hierro (€13,591), Betancuria in Fuerteventura (€13,985), and Teguise in Lanzarote (€14,306).

Average Incomes in the Canary Islands

The average net income per person in the Canary Islands was €12,486 in 2022, while the average household income stood at €33,274. Income levels vary significantly across the islands, with Fuerteventura recording the lowest average personal income at €11,629 and an average household income of €31,432. These figures reflect the impact of the recent increase in the Minimum Interprofessional Wage to €1,080.

Low-Income Households

The INE data also examines the percentage of the population earning less than €5,000, €7,500, and €10,000 annually. Across the archipelago, 21.8% of individuals, approximately 400,000 people, live on less than €10,000 per year. The province of Santa Cruz de Tenerife is particularly affected, with El Hierro being the most impacted island as 7.6% of its population lives on less than €5,000 annually.

Income Distribution Relative to the Median

The median income in the Canary Islands was €16,450 in 2022. One in four residents earned below 60% of the median (€9,870), while one in five earned up to 140% more than the median (€22,400). Additionally, 8.3% of the Canary Islands' population earned more than twice the median income (€32,900), with La Palma and Gran Canaria seeing higher percentages (10.6% and 8.9%, respectively) compared to Fuerteventura (6.5%).

When distinguishing between foreign and Spanish populations, the data shows that while one in four Canarians earned less than €9,600 annually, this figure nearly doubles among foreign residents. However, foreigners make up a smaller proportion of those earning above the median, with only 8.7% of the foreign population earning more than €22,000 annually.

Inequality in the Canary Islands

The report also utilises the Gini index to assess income inequality, revealing that the Canary Islands rank as the second most unequal region in Spain, just behind Madrid. Within the archipelago, La Palma and El Hierro exhibit the highest levels of income inequality.

These findings align with a recent study by four researchers from the University of La Laguna, who concluded that the Canary Islands exhibit the highest wealth inequality in Spain. Their analysis, which considered income, assets, and the Gini index, found that the top 10% of wealth holders in the Canary Islands control up to 60% of the region's wealth.

Implications and Future Outlook

The stark income disparities highlighted by these statistics underscore the ongoing economic challenges within the Canary Islands. With a significant portion of both native and foreign populations living on low incomes, there is an urgent need for targeted economic policies and social support systems to address poverty and reduce inequality.

As the region continues to develop its tourism and other key industries, ensuring equitable income distribution will be crucial for sustainable growth and social cohesion in the Canary Islands.

25% of Canary Islands residents lived on less than €9,800 in 2022

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